Ruto Refutes Sh104 Billion SHA Digital System Spending Claims, Highlights Service-Based Approach

President William Ruto has dismissed allegations that the government spent Sh104 billion on the Social Health Authority (SHA) digital system, explaining that the technology was implemented through a service-based model rather than being directly purchased.

Speaking at the Kenya Health Summit in Nairobi, Ruto emphasized that private firms invested in developing and maintaining the digital infrastructure, with the government paying only for services rendered. He likened this arrangement to how specialised medical equipment like MRI and CT scan machines are procured, where the government pays for usage but does not own the machines outright.

"Our focus is on providing services to citizens seeking treatment, not on buying machines," Ruto stated, highlighting that the government’s payments fall within a 5 percent management-cost cap under the new health financing system. This contrasts with the former National Hospital Insurance Fund (NHIF), where management costs once reached 40 percent and stood at 17 percent in 2022.

The President also refuted claims that hospitals pay private companies directly for digital services, clarifying that all payments are channeled through the health agency under established legal frameworks.

Digital Health Agency’s Role and System Benefits

Anthony Lenaiyara, CEO of the Digital Health Agency (DHA), supported Ruto’s statements by rejecting the notion of a single Sh104 billion contract. Instead, he described the SHA digital platform as a comprehensive ecosystem comprising 43 interconnected systems designed to support universal health coverage.

• Provision of tablets, computers, and software to public hospitals
• Private sector partners responsible for maintenance, upgrades, and technical support
• Improved claims processing and tracking, with public hospital payments rising from 35% under NHIF to approximately 62%
• Introduction of a unique patient identification system using national ID and biometrics to reduce duplicate identities and enhance record portability
• Verification of health worker credentials and licensing to ensure service quality
• Tracking medicines from manufacturers to patients to enhance drug safety and reduce wastage
• Integration of telemedicine, logistics management, and data analytics to improve service delivery and fraud detection

Ruto reiterated that the goal of digitising healthcare is to ensure every patient is visible, every treatment is traceable, and every payment is accountable. This approach aims to create a transparent and efficient health system where public funds are monitored and health services are reliably delivered.