The National Health Insurance Fund (NHIF) is at risk of losing a valuable 10-acre piece of land in the upscale Karen suburb of Nairobi, worth billions of shillings, to a rival group claiming ownership of the same property.
This emerged during a hearing of the National Assembly’s Public Investments Committee on Social Services, Administration and Agriculture.
“A rival group which had been claiming the 10-acre land had been paying for the land rates and rent rates of the disputed land,” NHIF Chief Executive Officer Elijah Wachira told the Committee. He said an individual named Peter Leparaku, representing the rival claimants, had made payments totalling KES 514,330 and been issued receipts by authorities, despite NHIF having also paid for the prime plot.
“The matter has since been reported at the Karen police station and investigations are ongoing,” Wachira stated.
The Committee grilled the NHIF chief on why the land had not been fenced off as ordered by a 2016 court ruling. “The rival group claiming the land had invaded the land, brought down a concrete wall and arrested the security guard on site,” Wachira explained.
Emanuel Wangwe, the Committee chair, questioned NHIF’s KES 3.9 billion expenditure on a multi-story car park in Nairobi. “We need to be told what drove up the cost of the project to the point where billions were paid just for consultancy,” he said.
The Committee was stunned to learn NHIF had previously paid KES 1.4 billion on a separate abandoned project on the same site before building the car park. “So, you are telling this Committee that two different projects were designed and abandoned on the same land?” Vice Chair Caleb Amisi asked incredulously.
Records show the car park cost ballooned from KES 3.3 billion at completion in 2008 to nearly KES 4 billion by 2011 due to additional charges.
“We want to know why engineers were paid such a colossal sum before the commencement of the project. The contractors of this project must also be summoned,” Amisi demanded.
MP Martin Owino questioned why NHIF had invested member contributions into real estate instead of healthcare. “When NHIF was investing these funds, where did they get the money? Was it from member contributions?” he asked pointedly.
Wachira responded that the new law replacing NHIF with the Social Health Insurance Agency prevents such deviations from the core healthcare mandate.
The Committee appears set to scrutinize NHIF’s land dealings and construction projects amid concerns over mismanagement of public funds meant for affordable healthcare.
