In a significant shake-up of Kenya’s healthcare administration, Social Health Authority (SHA) Acting CEO Elijah Wachira has been placed on 90-day compulsory leave. The suspension, announced on Tuesday, comes amid allegations of mismanagement and controversial financial decisions.
Board Chairman Dr Abdi Mohamed issued the directive, citing the need to investigate Wachira’s professional conduct. The move reflects growing concerns about the troubled transition from the National Health Insurance Fund (NHIF) to SHA.
SHA CEO Elijah Wachira.Courtesy photo
Robert Ingasira, who previously served as Financial Services Director, has stepped in as the interim CEO. The leadership change marks the second major shake-up since SHA’s establishment two months ago.
President William Ruto personally intervened in the matter after discovering troubling financial irregularities. Sources reveal that Wachira had allegedly diverted Sh1.5 billion to two insurance firms against board directives.
The funds were part of a Sh3 billion allocation announced by President Ruto during Mashujaa Day celebrations. This money was meant to settle outstanding payments owed to healthcare providers during the transition period.
What raised red flags was Wachira’s apparent refusal to release funds to hospitals despite having the necessary authorisation. When questioned, he claimed he was awaiting approval from the Ministry of Health.
However, Health Cabinet Secretary Deborah Mlongo confirmed that the authorisation letter had been issued two weeks prior. This revelation prompted immediate action from the president’s office.
The controversy deepens with allegations that Wachira made unilateral decisions exceeding his authority. SHA protocols require board or chairman approval for payments above Sh50 million.
Healthcare providers across Kenya have felt the impact of these payment delays. Some hospitals have resorted to demanding cash payments from patients due to mounting unpaid bills.
Recent SHA records show a concerning pattern in fund distribution. Private healthcare facilities received 85,700 service authorisations worth Sh1.2 billion in the past month alone.
In comparison, government facilities processed 78,100 authorisations, claiming Sh1.1 billion. This disparity has raised questions about resource allocation and priorities under Wachira’s leadership.
The Kenya Union of Clinical Officers (KUCO) has voiced strong concerns about the situation. They argue that the transition from NHIF to SHA was rushed, leading to a crisis in primary healthcare services.
KUCO Chairman Peterson Wachira believes the CEO’s removal alone won’t solve the underlying issues. He has called for a complete overhaul of the SHA board to address systemic problems.
The suspension also brings to light broader challenges in implementing the Universal Health Coverage (UHC) agenda. Healthcare providers report ongoing confusion about SHA’s new systems and benefits.
Wachira’s appointment just over a year ago had initially seemed promising. He brought considerable experience from the insurance sector, including four years as Managing Director of CIC General.
His former boss at NHIF, Michael Kamau, had praised his “invaluable wealth of experience.” However, the recent developments have cast doubt on the effectiveness of his leadership.
During his compulsory leave, Wachira will retain his full remuneration and benefits. Meanwhile, investigations into his professional conduct and performance will continue.
The SHA board’s statement expressed particular concern about actions that “put the delivery of healthcare services at risk.” They highlighted the diversion of Sh1.6 billion meant for public facilities as especially problematic.
Additional allegations suggest Wachira may have incited former NHIF staff members. Sources claim he encouraged them to withhold services until their transfer to SHA was officially confirmed.
This situation prompted President Ruto to address NHIF employees directly during his Mashujaa Day speech. He assured the 1,743 staff members that their jobs were secure.
Looking ahead, SHA faces significant challenges in stabilising its operations. The agency must address payment delays, clarify procedures, and rebuild trust with healthcare providers.
The success of Kenya’s Universal Health Coverage depends largely on resolving these administrative and financial challenges. Stakeholders await the outcome of investigations into Wachira’s conduct.