There is panic at the National Hospital Insurance Fund as it is now evident that the board will be disbanded followed with several high profile arrests and prosecutions over fraud, mismanagement and corruption.
According to a recent report, Mismanagement of funds, fraud and abuse of office are some of the major bottlenecks hindering the provision of quality services at the National Hospital Insurance Fund (NHIF).
According to a recent Health Financing Reforms Expert Panel (Hefrep) report, the fund has several organisational weaknesses that affect its operations.
The NHIF Chairlady Hannah Mureithi who is married to the brother of Karanja Kibicho is currently embroiled in a multimillion scandal with corrupt law firm MMC Africa and it is alleged she has been getting protection despite her criminal activities.
A few weeks ago, DCI detectives raided the fund and took with them many documents relating to the scandal that was never procured. Hannah Mureithi has also been accused of demanding for bribed from service providers claiming they go to CS Sicily Kariuki who has refused to quit the ministry.
A recent report also indicated 17 per cent of all the contributions made to NHIF are spent on advertising, salaries and accommodation, among other administrative costs. This means that even if Kenyans contribute Ksh. 1 million each, they will never satisfy the NHIF bottomless sinkhole.
Out of Sh45 billion collected in 2018, Sh8.3 billion was gobbled up in administration. The fund paid Sh4.48 Billion in salaries, Sh1.9 billion in advertising, Sh83 million in accommodation and Sh498 million on transport. Dr Samuel Nyandemo, an Economics lecturer at the University of Nairobi, said the administrative cost is too high, reflecting inefficiencies in the system. “This is evidence that there are redundancies and wastages within NHIF,” he said.
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