Last year, the National Hospital Insurance Fund (NHIF) was embroiled in a significant scandal involving the misappropriation of nearly KSh 2 billion.
The controversy centered on the implementation of a biometric system intended to streamline healthcare services for Kenyans. At the heart of this scandal was Abdul Galgalo Munishram, a businessman and close associate of Majority Leader Aden Duale.
NHIF had embarked on an ambitious project to introduce a fully biometric system aimed at enhancing the efficiency of healthcare services across the country. The plan involved registering all civil servants into a centralized database and equipping 1,370 hospitals with biometric kits as part of a pilot program.
The objective was to enable Kenyans to access medical services without the need for physical NHIF cards, relying instead on biometric identification.
Abdul Galgalo Munishram, through his company, Munshiram International Business System, was contracted by NHIF to develop and implement the biometric system. His company specializes in payment systems, management systems, card-based systems, and system integrations.
Munishram’s close ties with political figures, including Aden Duale, raised concerns about the transparency and integrity of the contract award process.
Reports indicated that Abdul Galgalo Munishram was introduced to a senior Rift Valley politician at an exclusive residence in Karen, Nairobi. This connection suggested potential political influence in the awarding of the NHIF contract.
Additionally, Munishram’s association with Aden Duale, a prominent political figure, further fueled suspicions of undue influence in the procurement process.
The deal metamorphosed into a multi-billion scandal after ‘powerful’ people in Government demanded a Sh400 million from Abdul Galgalo. The businessman agreed but on a condition that NHIF make advance payments to facilitate importation of the biometrics.
Despite NHIF making full payments for the supply and installation of the biometrics across the country, only four hospitals were fitted. Abdul Galgalo is said to have disappeared in thin air after being prodded severally by the CEO to honour the tender and make the supplies.
The scandal prompted investigations by various authorities, including the Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC).
Later, NHIF CEO Geoffrey Gitau Mwangi and Acting Finance Director Wilbert Kiplangat Kurgat were arrested and charged with conspiracy to defeat justice and disobedience of a lawful order. They were released on a KSh 1 million bond each.
However, no charges were brought against them regarding the alleged misappropriation of funds. This omission led to questions about who was responsible for the nearly KSh 2 billion that went missing.