SHA in hot seat as MPs question millions in irregular legal, board payments

Social Health Authority officials led by CEO Dr Mercy Mwangangi appearing before the Public Investments Committee on Social Services, Administration and Agriculture on Wednesday, October 22, 2025. /PARLIAMENT

The Public Investments Committee on Social Services, Administration, and Agriculture on Wednesday put the Social Health Authority under sharp scrutiny over unsupported board payments, irregular legal fees, and questionable project costs running into millions of shillings.

The PIC-SSAA committee, chaired by Emmanuel Wangwe, met SHA officials led by CEO Mercy Mwangangi at Parliament Buildings to examine audit queries raised by the Auditor General for the financial years 2021-22 to 2023-24.

According to the Auditor General’s report, the Authority’s Board received Sh5.83 million for meetings not supported by signed attendance registers or board minutes.

SHA CEO Dr Mercy Mwangangi takes oath before being questioned by MPs over unsupported board payments and irregular legal fees, October 22, 2025. /PARLIAMENT

Members expressed outrage at the revelation, questioning the propriety of the expenditure.

“If you say that the Board was paid five million, this means many deserving Kenyans were denied an opportunity to be treated,” said Ndhiwa MP Martin Peters Owino, terming the spending unjustifiable.

The audit report also revealed that legal expenses amounting to Sh247.8 million were included in the Authority’s financial statements, with Sh91.6 million paid for cases valued at only Sh13.9 million—an overpayment of Sh77.6 million contrary to Schedule 6(1)(b) of the Advocates’ Remuneration Order.

Wangwe questioned the rationale behind the huge payouts, asking, “Where is the value for money when you pay Sh77 million to collect Sh13 million?”

Public Investments Committee on Social Services, Administration and Agriculture committee chair Emmanuel Wangwe./PARLIAMENT

Nominated MP Bishop Kosgei faulted the Authority’s Finance Department, saying, “The Finance Director has let down the CEO and the institution by failing to cooperate with auditors and provide proper responses.”

The committee further revisited the multi-storey car park project whose cost ballooned from Sh909 million to Sh3.97 billion—a 337 per cent variation from the original contract.

Although a previous committee had recommended that the Ethics and Anti-Corruption Commission (EACC) investigate the project, no progress report has been submitted.

“There were more than two payments on the car park which shot the budget by 37 per cent. Make sure you tabulate all the transactions as documented in the books of account,” Wangwe said.

Committee vice chairperson Caleb Amisi (Saboti). /PARLIAMENT

Vice Chairperson Caleb Amisi (Saboti) voiced frustration over repeated justifications by government agencies.

“We are talking about billions of shillings of taxpayers’ money. The Covid-19 pandemic line is a tired excuse by government institutions that have embezzled public funds.”

Responding to the committee’s concerns, Mwangangi said SHA is undergoing reforms and working with documents inherited from the defunct National Health Insurance Fund (NHIF).

Social Health Authority CEO Dr Mercy Mwangangi. /PARLIAMENT

“We are committed to accountability and transparency, and we have made significant reforms to address past weaknesses,” Mwangangi said.

The committee directed SHA to provide missing documentation and evidence of cooperation with the anti-corruption agency regarding the stalled car park investigation.