Duale Dismisses Daily Nation Report Alleging Ksh1.2 Billion Was Paid to a Private Company

Health Cabinet Secretary Adan Duale has dismissed a report published by the Daily Nation, saying it incorrectly portrayed how service fees under Kenya's digital health system are managed.

In a statement released on Tuesday, August 4, Duale responded to claims made in the newspaper regarding payments linked to the national digital health platform. 

He argued that the report gave the public the false impression that government funds were being directed to a private company outside the legal framework.

According to the CS, the claims made in the publication were misleading and did not accurately explain how the system operates. 

He maintained that the service fee is established by law and plays an important role in supporting the country's Universal Health Coverage (UHC) programme.

Duale explained that Kenya's healthcare system cannot effectively manage patient registration, verification, and claims processing through manual records alone, making a secure digital platform necessary.

He further stated that the Social Health Insurance Act, 2023, requires all healthcare claims to be processed digitally. In addition, the Digital Health Regulations, 2025, provide for a service fee of two per cent on every processed claim, with a maximum charge of Ksh5,000 per transaction.

The Daily Nation report claimed that the digital platform has generated approximately Ksh1.2 billion since its launch. 

It also questioned the transparency of the arrangement, noting that the company operating the platform had not been publicly identified, raising concerns over procurement and accountability.

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

He also emphasized that no private entity receives, controls, or distributes money intended for healthcare providers. Instead, he said the Social Health Authority (SHA) is solely responsible for reviewing, processing, and paying claims in accordance with the Social Health Insurance Act, 2023.

The CS added that all funds collected by the Digital Health Agency are public funds, subject to auditing under the Public Finance Management Act and oversight by the National Assembly.

Duale also confirmed that the dispute is currently before the High Court, where he has been named as a respondent. He said the government will present its response through the court process and will respect the court's final decision, adding that he would not debate the matter through the media.