The Sh1.23 billion police hospital in Nairobi’s Mbagathi area will soon be handed over to the National Police Service (NPS) after Members of Parliament agreed to slash the allocation to insurance cover for police officers to clear the Sh833 million owed to the contractor.
This is despite the NPS awarding a Sh8.7 billion contract to APA and Joint Venture for the provision of police insurance cover from April 1, 2025, to March 31, 2026.
Members of the Administration and Internal Affairs Committee of the National Assembly said the government is struggling with expensively procured police insurance cover at the behest of underwriters yet NPS does not want to pay claims to injured officers or families of fallen officers.
The members of the committee, chaired by Narok West MP Gabriel Tongoyo noted that operationalisation of the 150-bed capacity hospital completed two years ago and currently fully equipped and staffed, will see billions that would have been spent on expensive medical covers, channelled to deserving areas.
This even as they demanded details of how the contract for the construction of the hospital was awarded.
Mr Tongoyo and Saku MP Dido Rasso, the Vice Chairperson of the Committee, led the calls to reduce insurance costs, noting that admitting police officers in private hospitals that are expensive, yet they have a hospital of their own, is not prudent use of “the limited” public resources.
“We are seeing that you have Sh12 billion allocated for police insurance yet you have nothing towards clearing the hospital’s pending bill,” Mr Tongoyo challenged Inspector-General of Police Douglas Kanja and NPS secretary of administration Bernice Lemedeket.
“Why not use the insurance funds to clear the hospital bill? The hospital is now becoming a white elephant,” said Mr Tongoyo, adding; “despite its completion, the police are not getting the services they need.”
The hospital, a level 4 facility, constructed under the supervision of Kenya Defence Forces (KDF) personnel, was completed in the 2022/23 financial year.
It would later be fully equipped and staff recruited, but cannot be handed over to the NPS unless it clears the balance for which only Sh400 million of the contract sum was paid.
National Police Service Hospital in Nairobi on April 6, 2025.
Photo credit: Evans Habil | Nation Media Group
Auditor-General Nancy Gathungu has since flagged the hospital’s Sh833.63 million pending bill in the audited accounts of NPS for the 2023/24 financial year.
The facility was designed to provide critical and specialised medical healthcare services to NPS officers across the country, especially those on the frontline, and their families, to improve the welfare and well-being of the officers.
However, the committee’s members were surprised after Ms Lemedeket revealed that Sh200 million has been allocated in the next financial year to pay medical staff at the hospital “for doing nothing, yet it is not ready to clear its debts.”
“We need an explanation why we have billions spent on police insurance cover yet there is no allocation towards clearing of the pending bill that has prevented NPS from taking over the hospital,” said Mr Rasso, adding, “or maybe there are things we don’t know?”
The Saku MP went on to lecture IG Kanja and Ms Lemedeket how “this hospital is very critical to us as a country and to our officers on the frontline.”
“This is a top referral facility for the police. Paying the workers in the hospital for doing nothing is a matter the Auditor-General should easily pick as an audit query,” the Saku MP.
Teso North MP Oku Kaunya, the former Administration Police Training College deputy commander, warned that handing over the police to NPS is long overdue.
“We must get funds for the insurance allocation to clear the pending bill. Otherwise, we will continue to lose a lot of money if the hospital remains unused,” said Mr Kaunya.
Nyakach MP Aduma Owuor, a member of the committee, noted that although the hospital is a good idea, NPS should come clean on how the tender for its construction was awarded.
“Get us the details of the procurement that led us to this pending bill. Was the law followed?” posed Mr Aduma. This, as it emerged that immediate former President Uhuru Kenyatta had issued an order to the military to supervise the hospital’s construction.
Recruits in a parade during a past pass-out ceremony at Kenya Police College Kiganjo
Photo credit: File | Nation Media Group
The Auditor-General has already flagged irregularities in the administration of the Sh8.7 billion medical insurance contract that was awarded to NHIF during the 2023 period, which includes the non-payment of claims by insurers despite the government releasing the funds.
The 2023 contract would later be extended for a further three months to March 31, 2024, at an additional premium of Sh2.2 billion, increasing the cover for the police during the period to Sh10.9 billion.
Also questioned by Ms Gathungu, is the litany of abuses of public funds at the NPS involving the Sh6.3 billion insurance cover for the provision of Group Life Cover, Work Injury Benefits (Wiba) and Group Personal Accident Cover (GPA) for the police officers.
Of the premium amount, Sh5.1 billion covered the officers from January 1, 2023 to December 31, 2023.
The contract would later be extended for a further three months to March 31, 2024 at a premium of Sh1.3 billion.
“However, review of insurance records revealed anomalies,” the audit says, an indication that the principal members and their beneficiaries may have gotten a raw deal.
Notably, Ms Gathungu says, a review of insurance records revealed irregularities that include unpaid claims relating to Group Life benefits, injury GPA and Wiba claims.
This is despite the contract providing that where a member is out of work as a result of an injury or illness, “such members shall be entitled to compensation for loss of gross salary up to a maximum period of two years.”
The audit shows that a review on insurance records revealed that as at the time of the audit, the insurer had not settled 262 unpaid GPA claims despite having been notified.
Clause 2.3.1 of the contract provides that upon the death of a member, the member’s declared next of kin shall be paid a lump sum compensation equivalent to five years' annual basic salary.
“As at the time of the audit, the insurer had not paid 21 claims worth Sh43.5 million in respect of group life sum assured,” the audit states adding; “this was contrary to the contract terms which states that claims shall be paid within five days after notification and provision of all documents.”
The contract also provides that temporary disability shall be compensated through a periodic payment equivalent to the member’s salary.
“Periodical payments shall be made for as long as the temporary disablement continues but not for a period that exceeds 12 months,” the contract reads.
But according to the Auditor-General, a review on insurance records revealed that as at the time of the audit, the insurer had not settled 509 Wiba claims and two Wiba deaths.
This is against the contract provisions, which state that death or total disablement under Wiba or as a result of occupational accident shall be compensated at a rate of 8 years' gross salary of the beneficiary.
