The Social Health Authority (SHA) is facing mounting pressure from lawmakers after failing to disburse Sh8.14 billion in insurance benefits to families of public servants who died or were injured in the line of duty.

The matter has sparked outrage in the Senate, with legislators warning that the delays have left thousands of families trapped in prolonged financial hardship.

Bungoma Senator Wakoli Wafula has spearheaded calls for a full Senate probe into the non-payment of these claims, which cover beneficiaries under civil servants’ policies, the National Youth Service, and teachers’ enhanced insurance schemes.

According to official records, the pending benefits have accumulated over three financial years 2020/21, 2022/23, and 2023/24 despite the insurance schemes being fully funded by the State.

The unsettled claims fall under several insurance categories, including Group Life, Last Expense, Work Injury Benefit Act (WIBA) provisions, and Group Personal Accident (GPA) cover.

These schemes are designed to cushion families after the loss or injury of a breadwinner in the public service, yet reports to Parliament reveal that many beneficiaries are enduring unnecessary suffering while billions remain locked up.

One of the most striking examples is the case of a senior government doctor who died in 2020 while treating Covid-19 patients. Five years later, the doctor’s family is still waiting for a Sh29.9 million payout money meant to support them after his sacrifice during the pandemic.

Senator Wafula noted that such cases highlight a “deep crisis” in the government’s human resource management, warning that failure to meet basic obligations to employees undermines morale and erodes public trust.

The Bungoma legislator further revealed that numerous families have been pushed into financial distress, with some unable to cover school fees, medical expenses, or basic living costs. He criticised both SHA and the defunct National Health Insurance Fund (NHIF), which previously managed the schemes, for what he described as “systemic negligence” in processing claims.

National Treasury Principal Secretary Dr Chris Kiptoo, in a letter to SHA Chief Executive Officer Dr Mercy Mwangangi, admitted that the payments had been delayed due to “financial challenges” at the Treasury. He acknowledged that the non-remittance of premiums over three financial years had negatively affected SHA’s ability to process claims in a timely manner.

However, Dr Kiptoo pointed out that the Treasury had already released Sh1.6 billion as a gesture of goodwill and commitment to resolving the backlog. He assured lawmakers that his office is pursuing additional Exchequer funding to clear Sh3.93 billion in legacy claims lodged before April 15, when the current insurance contract took effect.

The Senate Health Committee, chaired by Uasin Gishu Senator Jackson Mandago, has been directed to investigate the root causes of the delays. Lawmakers want SHA to explain the administrative and financial bottlenecks that have stalled payments and to indicate whether accrued interest will be factored into the final settlement.

Senator Wafula has also called on the committee to ensure SHA provides a clear, time-bound payment schedule to restore public confidence. “If the government cannot honour its basic obligations, what does that say about its commitment to the welfare of its people?” he posed during the Senate session.