Mystery Firm Linked to KSh 1.2 Billion SHA Deductions Faces Court Challenge
A private technology firm is at the centre of a legal challenge over deductions made from payments by the Social Health Authority (SHA) to hospitals.
According to documents filed in court by three petitioners, including Busia Senator Okiya Omtatah, Finsprint Limited has received about KSh 1.2 billion through a two per cent levy deducted from SHA claims paid to healthcare providers up to 1st July.
The contested charge, described as a Health Information Management System (HIMS) System Utilisation Fee, is deducted directly from the value of hospital claims before the money reaches the facilities.
The petitioners argue that the deduction lacks legal authority, parliamentary approval and public participation. They claim it amounts to an unlawful diversion of funds meant for healthcare providers.
Court papers state that SHA had disbursed approximately KSh 60.7 billion in claims, from which the 2% deduction produced the estimated KSh 1.2 billion. The figure is based on the petitioners’ calculation and has not been determined by the court.
Finsprint Limited was incorporated in July 2020 with a nominal share capital of KSh 100,000. Its directors are listed as Issa Sheikh Mohamed and Abdulhakim Ibrahim Sheikh.
The petitioners are seeking interim orders to suspend the 2% deductions until the case is heard and determined. They also want the court to stop any circular or instrument authorising the fee.
The case has added to growing public questions about transparency in the management of SHA funds, especially as many hospitals continue to report delayed or reduced payments.
Questions on the ground:
Under what legal authority is the 2% HIMS fee being deducted from hospital claims?
Where exactly does the deducted money go, and how is it accounted for?
Should private firms be allowed to take a percentage of public health insurance payments without clear legislation?
The respondents had not filed their responses at the time the petition was reported.
Stay informed. Stay ahead.
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