Home HEALTH Audit Revelations On Unaccounted Billions Of Shillings In Civil Servants’ Health Fund

Audit Revelations On Unaccounted Billions Of Shillings In Civil Servants’ Health Fund

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Auditor-General Nancy Gathungu

An audit report of the Public Officers Medical Scheme Fund (POMSF), has reported billions of shillings set aside to cover medical expenses for Kenya’s civil servants cannot be accounted or reconciled for, auditor- general Nancy Gathungu has said.

Her report reveals that the funds claims to have paid a benefits worth Ksh 2.6billion but cannot produce basic details such as: SHA member numbers, names, employer details, types of medical intervention, claim amounts, approved claims and admission and discharge dates.

The fund draws its revenue from the mandatory 2.75% Social Health Insurance Fund (SHIF), deduction from salaries, supplemented by money appropriated by the national assembly specifically for the civil servant medical benefit and funds provided by government employers through the Ministry of Public Service and other participating agencies.

In the audit report for the financial year ending June 30, 2025, auditor- general Nancy Gathungu, issued a formal warning that the fund’s books are so riddled with gaps that their accuracy cannot be relied on.

The only transaction supported by primary payment documents is a single payment of Ksh 1.2billion received on February 26, 2025, from the Public Service. This left 5.32billion, of the fund’s reported income with no matching documentation.

Gathungu, confirmed that she could not confirm whether the fund was being managed effectively stating two critical governance failures: the absence of a policy document to guide how the scheme is run and management’s failure to provide a list of employers contributing to the fund together with signed contracts.

The POMSF a state backed fund was established in 2024, to provide comprehensive medical coverage for public officers including: civil servants, teachers and disciplined services personnel.

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