Duale Rejects Daily Nation Claims That Ksh1.2 Billion Was Channelled to Private Firm

Duale Rejects Daily Nation Claims That Ksh1.2 Billion Was Channelled to Private Firm

NAIROBI, Kenya – Health Cabinet Secretary Aden Duale has strongly dismissed claims published by the Daily Nation suggesting that Ksh1.2 billion generated through Kenya’s national digital health platform was channelled to a private company, insisting that the report misrepresented how the country’s digital health financing system operates.

In a detailed statement issued on Tuesday, August 4, Duale defended the government’s digital healthcare framework, maintaining that the service fee charged on claims processed through the platform is fully anchored in law and forms a key component of Kenya’s push toward Universal Health Coverage (UHC).

The CS argued that the newspaper’s front-page story created a misleading impression that public funds meant for healthcare providers were being diverted to a private entity, a claim he described as inaccurate.

“My attention has been drawn to the report carried by the Daily Nation on 4th August 2026 concerning the service fee levied on claims processed through the national digital health system,” Duale said.

He insisted that the government would not allow what he termed misinformation to undermine public confidence in ongoing health sector reforms.

“The report creates the impression that public money is being paid to a private company outside the law. That impression is wrong, and I reject it,” the Health CS stated.

Duale Defends Digital Health System

According to Duale, Kenya’s healthcare system cannot efficiently manage millions of patient records, hospital claims and provider payments through manual or paper-based processes.

He said digitisation is essential to ensuring timely verification of patients, processing of claims and accountability within the country’s health financing system.

The Cabinet Secretary explained that the Social Health Insurance Act, 2023, requires all healthcare claims to be processed through a secure digital platform designed to enhance efficiency, transparency and fraud prevention.

He further cited the Digital Health Regulations, 2025, which establish a service fee of 2 per cent on processed claims, capped at Ksh5,000 per transaction.

According to the Ministry, the charge supports the operation and maintenance of the national digital health infrastructure.

Questions Raised Over Ksh1.2 Billion

The controversy emerged after a report by the Daily Nation indicated that approximately Ksh1.2 billion had been generated through the digital platform since its rollout.

The publication questioned the transparency surrounding the arrangement, noting that the company operating the system had not been publicly identified.

The report also raised concerns about whether procurement procedures, governance structures and disclosure requirements had been adequately followed.

Those revelations triggered fresh public debate over the management of Kenya’s digital healthcare infrastructure and the handling of funds generated through the system.

Funds Go to State Agency, Says CS

Responding to the concerns, Duale clarified that the service fee is collected by the Digital Health Agency (DHA), a public institution established under the Digital Health Act, 2023, and not by a private company.

He maintained that healthcare providers are paid exclusively by the Social Health Authority (SHA) as provided for under the law.

“No private entity receives, holds, controls or disburses funds due to healthcare providers. Under Sections 5(e), 35 and 36 of the Social Health Insurance Act, 2023, it is the Social Health Authority alone that reviews, processes and pays claims to contracted providers out of the Funds established under that Act. That responsibility has not been delegated to any private party,” Duale emphasized.

The CS added that every shilling collected by the Digital Health Agency is treated as public revenue and is subject to government financial oversight.

According to him, the funds are audited in accordance with the Public Finance Management Act and reported to the National Assembly through established accountability mechanisms.

Matter Now Before the High Court

Duale also confirmed that the dispute has now moved to court after legal proceedings were filed challenging aspects of the digital health system.

The Health Cabinet Secretary revealed that he has been named as one of the respondents in the case and pledged to respect the judicial process.

“The matter is now before the High Court, and I am named as a respondent. The Government will file its full response on the record, and I will abide by the court’s determination. I will not litigate this matter in the press,” Duale said.

His remarks signal the government’s intention to defend the digital health programme through the courts rather than public exchanges.

As scrutiny of Kenya’s health financing reforms intensifies, the case is expected to shape future discussions on transparency, procurement, digital governance and the implementation of Universal Health Coverage.

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Duale Rejects Daily Nation Claims That Ksh1.2 Billion Was Channelled to Private Firm