President William Ruto’s Chief Economic Advisor David Ndii has dismissed claims that a private technology company pocketed Ksh1.2 billion through a controversial two per cent deduction imposed on payments made by the Social Health Authority (SHA) to hospitals.
Ndii was responding to reports published on Tuesday that linked the firm to a High Court case challenging the legality of the levy deducted from hospital reimbursements under SHA.
The case, filed by Busia Senator Okiya Omtatah alongside two other petitioners, alleges that the private company had received about Ksh1.2 billion from the deductions by July 1, 2026.
However, Ndii said the figure had been misrepresented, insisting the money does not constitute payments to the company but revenue collected on behalf of the Digital Health Authority (DHA).
“The two per cent fee is what Finsprint is contracted to collect for DHA, not what a private company is paid,” Ndii said.
He explained that Finsprint is a fintech payment gateway service provider contracted by the Digital Health Authority to support Kenya’s digital health infrastructure.
According to Ndii, the disputed two per cent fee finances the country’s Universal Health Coverage (UHC) digital systems and related technology services rather than serving as direct income for the company.
“The two per cent fee is what pays for all the UHC health technology infrastructure and services,” he added while dismissing the claims raised in the court case.
The dispute centres on the Health Information Management System (HIMS), the digital platform hospitals use to submit claims, seek treatment approvals and receive reimbursements under SHA.
In the petition before the High Court, Omtatah and the two co-petitioners argue that the deduction has no legal basis because it was introduced without parliamentary approval or public participation.
They are seeking conservatory orders to suspend the levy until the court determines whether it is lawful.
The petition also questions the role of the private firm in processing SHA payments and handling patient data. The petitioners argue that the deductions unfairly reduce hospitals’ reimbursements and could raise concerns over the protection of sensitive health information under Kenya’s Data Protection Act.
The High Court is expected to determine whether the contested deduction should remain in force while the case is being heard.
As the legal battle unfolds, the Ministry of Health, led by Health Cabinet Secretary Aden Duale, had not issued an official response to the allegations raised in the petition by the time of publication.