Sidian Bank has moved to clarify its role in handling Social Health Authority (SHA) funds following reports linking the bank to the management of the new health insurance scheme.
In a statement on Monday, Tuesday 26, the bank stated that it is among the institutions appointed by the Central Bank of Kenya (CBK) to support remittances, but does not control or manage the contributions.
"Sidian Bank is one of six CBK-licensed banks, KCB, Sidian, Co-op, Equity, Absa, DTB—selected for SHIF remittances after employer consultations," the statement read.
The bank explained that its role is strictly limited to collecting contributions and forwarding them directly to the relevant SHA accounts.
"Sidian Bank only facilitates collections, remitting directly to SHA accounts. We do not hold or manage SHA funds," the statement added.
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The clarification comes at a time when the implementation of SHA has been under close public and media scrutiny.
For instance, earlier Monday, Health Cabinet Secretary Aden Duale highlighted how rogue hospitals were defrauding SHA.
In a statement, the CS said audits revealed that some hospitals and clinics have been inflating bills, falsifying records, and submitting claims for services never provided.
Duale noted that investigators found that certain facilities were engaging in upcoding, where patients were billed for more expensive procedures than those actually performed.
Other institutions were involved in the falsification of records, altering or creating false medical documentation in direct violation of the Social Health Insurance Act and its regulations.
There were also cases where outpatient visits were illegally converted to inpatient admissions, allowing facilities to claim higher reimbursements, and incidents of phantom billing, where services were billed for patients who did not exist.
Despite the setbacks, Duale has insisted that the government will not be distracted from its mission to overhaul the healthcare system.
Responding to a headline by a local newspaper that alleged massive payouts to hospitals associated with government officials, he claimed the coverage was part of an attempt to derail reforms.
"No amount of propaganda or blackmail will deter us from fixing our healthcare system. We know saboteurs of SHA have recruited several groups, including some sections of the media, to advance their agenda. Let them be warned: We are fixing this thing regardless of the noise.
"Our work has just begun. We will not rest until every Kenyan has access to quality, affordable, and dignified healthcare, free from the burden of fraud," he said.
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