Scandal as 104 Billion-Shlling Software ‘Heist’ Exposed at New SHIF/SHA

By MWAI WACHIRA, SOFTWARE DEVELOPER

Kenya’s latest healthcare reform, the transition from the National Health Insurance Fund (NHIF) to the State Health Insurance Fund (SHIF), has erupted into a scandal of massive proportions, with critics branding it a “heist” of epic proportions. Behind the promises of modernisation and improved services lies an alleged plan to funnel billions of shillings into private pockets under the guise of implementing a new software system.

104 Billion Reasons to Question SHIF

The centrepiece of the controversy is the staggering KES 104 billion price tag for a software platform designed to manage SHIF operations. Critics, including software developers and public commentators, argue this is an astronomical overcharge. Industry insiders estimate the true cost of developing such a platform to be between KES 500 million and KES 1 billion at most.

So, why the massive markup? A consortium of three companies has been tasked with delivering the platform:

• A firm linked to Adani Group, infamous for its controversial business practices.
• Safaricom, Kenya’s telecoms giant, whose role in software development remains unclear.
• A company associated with David Ndii’s wife, raising eyebrows over potential conflicts of interest.

The consortium’s composition and lack of prior expertise in software development have only fuelled suspicions.

Who Gets What?

The alleged breakdown of the consortium’s spoils reads like the script of a heist film:

• The Adani-linked firm reportedly holds 60%, pocketing a cool KES 6 billion annually for the next decade.
• Safaricom and the Ndii-linked company each hold 20%, earning KES 2 billion annually.

With these payouts slated for ten years under a Public-Private Partnership (PPP) arrangement, the Kenyan public is effectively funding a KES 104 billion bonanza for private entities.

“Why Not Upgrade NHIF?” Critics Ask

The NHIF already had a functioning software system that could have been upgraded to meet SHIF’s needs at a fraction of the cost. Critics argue that abandoning this system in favour of an entirely new platform smacks of ulterior motives.

“The NHIF system was working well. It would’ve cost peanuts to tweak it for SHIF’s requirements,” one tech expert noted. “Instead, we’re paying for a Rolls Royce to do a bicycle’s job.”

Kenyan Talent Snubbed

Kenya boasts world-class programmers capable of delivering the required platform locally. Yet, the consortium is expected to outsource the actual software development to Indian contractors, paying standard market rates. This approach not only undermines local talent but also allows the consortium to rake in exorbitant profits.

The Public Loses Twice

Under NHIF, 5% of annual contributions went toward operational costs, amounting to KES 15 billion from KES 300 billion collected annually. With SHIF, KES 10 billion annually will now flow to the consortium, leaving only KES 5 billion for administrative expenses.

This funding gap could cripple SHIF’s ability to deliver services, potentially leading to longer waiting times, reduced benefits, and a further strain on Kenya’s already struggling healthcare system.

A Trail of Questions

As details of the SHIF saga emerge, Kenyans are left grappling with unsettling questions:

• Why was the existing NHIF software discarded instead of upgraded?
• Was the tendering process for the SHIF platform truly competitive and transparent?
• How will SHIF sustain itself with diminished operational funds?
• Most importantly, who ultimately benefits from this KES 104 billion deal?

Public Outcry and Political Fallout

News of the alleged “heist” has ignited public outrage, with Kenyans taking to social media to vent their frustrations. Hashtags like #SHIFScam and #HealthcareHeist are trending as citizens demand accountability.

Opposition leaders have also seized the moment, calling for a parliamentary inquiry into the deal. “This isn’t just a misuse of public funds—it’s a betrayal of every Kenyan who relies on affordable healthcare,” one MP declared.

The Shadow of Adani

The involvement of a firm linked to the Adani Group has added an international dimension to the scandal. Known for its controversial business practices, the group’s participation raises red flags about the deal’s integrity. Some speculate that the Adani-linked firm could be a front for undisclosed beneficiaries, further muddying the waters.

The Human Cost

Amid the financial intrigue, it’s easy to lose sight of what’s truly at stake: the health and wellbeing of millions of Kenyans. With billions diverted away from patient care and medical infrastructure, the most vulnerable members of society are likely to bear the brunt of the fallout.

“This is more than a financial scandal. It’s a moral failure,” one healthcare advocate lamented. “People will die because money meant for their treatment is being siphoned off into private hands.”

Kenya’s Moment of Reckoning

The SHIF scandal underscores deeper issues in Kenya’s governance, from weak oversight mechanisms to a culture of impunity among the elite. For many, it’s a wake-up call to demand greater transparency and accountability in how public funds are managed.

As the story unfolds, one thing is clear: the SHIF heist is about more than just money. It’s a battle for the soul of Kenya’s healthcare system—and for the trust of its people.

Stay tuned as we continue to expose the twists and turns of this developing scandal. Who will be held accountable? Will SHIF crumble under the weight of its own controversy? Only time will tell.