Health Cabinet Secretary Aden Duale has defended the service fee charged on claims processed through the national digital health system, dismissing claims that public funds are being diverted to a private company.
In a statement on Tuesday, August 4, he responded to a report published by a local newspaper, saying it had created a misleading impression about the legal framework governing the fee.
Duale said the government had undertaken an unprecedented reform by placing the country's entire health financing system on a single digital platform.
"This administration has undertaken what no Government before it attempted: to place the entire health financing system of this country on a single, verifiable digital platform. Such a system must be built, secured, run and maintained, and the law provides for how it is paid for," the statement read.
Duale explained that the 2 percent charge is provided for under Regulation 11(2) of the Digital Health (Data Exchange Component) Regulations, 2025.
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He said the regulation requires users of the Health Information Management Service (HIMS) to pay a service fee, with the Third Schedule capping the amount at Ksh5,000 regardless of the value of the claim.
"It is therefore a capped fee for the use of a system. It is not an open-ended share of any hospital's earnings," the statement added.
According to Duale, the fee is paid directly to the Digital Health Agency (DHA) which was established under the Digital Health Act, 2023.
He said the agency is legally mandated to operate the Comprehensive Integrated Health Information System and is authorised by law to collect levy fees for services it provides.
"This is a charge by a public body, for a public system, authorised by statute," the statement further read.
Duale also rejected suggestions that private entities control or receive healthcare funds intended for hospitals.
He said only Social Health Authority (SHA) has the legal mandate to review, process and pay claims to contracted healthcare providers, adding that all money received by the DHA is public money subject to statutory oversight and auditing.
"There is no parallel account and no hidden ledger. There is the ordinary constitutional process of public audit, and it applies here exactly as it applies to every other State agency," the statement explained.
Addressing concerns about the involvement of private firms in the digital health system, Duale said the platform is delivered under a government contract with the Safaricom Consortium.
He added that subcontracting under such contracts is lawful and does not transfer control of public funds or claims payments to private companies.
Duale further stated that the Digital Health Regulations were developed through a regulatory impact assessment, public participation and stakeholder consultations before being approved by both Houses of Parliament and published in the Kenya Gazette on April 11, 2025.
"They have been freely available to every Kenyan since that date. A fee set out in a published law, debated and approved by Parliament, is not a mystery," the statement noted.
Duale confirmed that the matter is currently before the High Court, where he has been named as a respondent, adding that the government would respond through the court process rather than through public debate.
"The matter is now before the High Court, and I am named as a respondent. The Government will file its full response on the record, and I will abide by the determination of the court. I will not litigate this matter in the press," the statement read.
Duale also assured healthcare providers that the government remains open to engagement and has instructed both the SHA and the DHA to continue addressing concerns raised by hospitals and other stakeholders.
"To our healthcare providers: my door is not closed. I have directed the Social Health Authority and the Digital Health Agency to continue engaging you directly through the stakeholder mechanism, and to resolve claims complaints without delay. Where the system can be improved, we will improve it," the statement concluded.
This comes over a week after DHA warned health facilities against fraudulent certificates being circulated by individuals seeking to mislead healthcare providers into believing their HMIS have been certified.
The warning follows the circulation of counterfeit 'Certificate of System Compliance' documents bearing the Digital Health Agency’s branding and signatures.
In a notice on Tuesday, July 21, the agency urged healthcare providers to remain vigilant and verify every certificate before accepting it as genuine.
"Please be cautious of fake certificates being circulated to deceive health facilities. Kindly verify the authenticity of any HMIS certificate through the official DHA verification portal," the notice read.
The agency noted that verification through its official portal is the only reliable way to confirm whether a certificate has been legitimately issued following the required system assessment and compliance process.
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