The National Health Insurance Fund (NHIF) management has faced tough scrutiny over its financial performance and audit irregularities.
In a heated session of the National Assembly’s Public Investments Committee on Social Services, Administration, and Agriculture, chaired by Navakholo MP Emanuel Wangwe, NHIF CEO Elijah Wachira and Director of Financial Services Robert Ingasira were grilled on the Auditor-General’s report for the financial year 2018/2019.
NHIF’s financial downtown
The Fund, once a pillar of healthcare financing in Kenya, reported a significant financial downturn.
A deficit of Ksh 3.67 billion was recorded in the 2018/2019 financial year, compared to a surplus of Ksh 295.92 million in the previous year. This sharp decline in financial stability raised concerns about the sustainability of NHIF, which plays a crucial role in making health services more accessible and affordable.
“We are concerned about the declining performance of the Fund,” said Wangwe. “If the current trend continues, NHIF may face serious financial difficulties in the near future.”
In defense, the NHIF boss pointed out several strategic interventions aimed at reversing the downward trend.
“We have taken steps to boost membership growth, increase revenue, and curb fraudulent claims. Among our key initiatives are the upgrading of the customer experience center, the development of self-care platforms, and the implementation of electronic claims processing,” Wachira explained.
However, the Committee remained unsatisfied with NHIF’s explanations regarding certain expenditures, particularly staff welfare and recruitment processes.
“Why didn’t you provide the supporting documents for staff recruitment and welfare expenditures when requested by the Auditor-General?” the committee’s chairperson asked.
MPs further raised issues, criticizing NHIF’s documentation.
“The responses are incomplete, annexes do not tally, and the explanations provided so far are unsatisfactory,” one noted.
The session concluded with the Committee adjourning the meeting, giving NHIF another month to gather all relevant documents and provide clear, paginated responses.
“We expect NHIF to come back with better-prepared answers and documents that satisfy this Committee’s queries,” the committee warned.
