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NHIF defends use of Interior ministry cash

Friday, June 4th, 2021 00:00 | By
National Hospital Insurance Fund headquarters in Upper Hill, Nairobi. Photo/File

Mercy Mwai @wangumarci

 The National Health Insurance (NHIF) has refuted claims that it is holding onto Sh200 million that the Ministry of Interior and National Coordination has demanded be refunded.

 Appearing before the Public Accounts Committee (PAC) chaired by Opiyo Wandayi, Kamunyo explained to legislators that all the monies remitted to it was spent and only a balance of Sh5 million remained.

 Chief Executive Peter Kamunyo told the MPs that in  the two-year contract running from 2017-19, the ministry paid Sh4.5 billion to the public health insurer for the comprehensive medical cover and a further Sh200m for excess loss of cover to cushion members, who might exhaust their limit, monies which can all be accounted for.

Submitted all documents

 “We have documentary evidence of the people who had used the amount beyond their limits.

The Sh200 million was utilized and only a balance of Sh 5.3million was left. We have submitted all the documents required,” he said. 

In his brief to the committee,  he said the relevant department exhausted the amount adding that the agency provided all the details of how the money was spent although this was only provided in the aggregated returns of the whole Sh4.7 billion instead of giving a breakdown on the utilisation of Sh4.5billion separately and Sh 200 million separately.

 “For inpatient care for the lower job group, there was a utilisation of Sh205,554,081, for C-section utilisation was Sh9,642,567, for optical was Sh12,179,202, dental Sh8,319,324. So for the total fund utilisation for the year 2018/19 was Sh237,238,889 leaving an accumulative balance of Sh5, 326,427,” the CEO said.

“The data captured for members was included as one amount so it required reconciliation which our team was working on hence the delay,” Kamunyo explained. 

He spoke when he appeared before the committee to respond to the claims as raised by the Auditor General Nancy Gathungu.

National Police Service (NPS) had procured a comprehensive medical cover for a period of two years commencing on October 1, 2017 to September 30, 2019 through direct procurement method.

 Gathungu in her 2017-18-audit report said there was no evidence of any employee exceeding the limit; hence, the money should have been refunded.

  Interior Principal Secretary Karanja Kibicho while appearing before the committee last month said they had no option but to withhold the subscription as the fund’s body had refused to refund them Sh200 million.

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