EXPOSED: How A Billionaire Cartel Has Controlled Teachers’ Medical Cover for Nine Years in Sh161 Billion Scandal

Date:

MINET– A shocking petition filed in the National Assembly has unmasked how a powerful consortium of insurance firms and two companies linked to a billionaire with vast medical interests have monopolized teachers’ medical cover for nine years, bagging Sh161 billion in the process.

EXPOSED: How A Billionaire Cartel Has Controlled Teachers’ Medical Cover for Nine Years in Sh161 Billion Scandal
Minet Insurance Brokers Kenya Limited Chief Executive Officer Sammy Muthui at a past event.

Even more disturbing, the same cartel-controlled firms have also won lucrative contracts to insure the National Police Service (NPS) and Kenya Prisons Service (KPS), raising serious concerns about corruption and conflict of interest.

Teachers and Police Officers Suffer as Hospitals Reject Them

This scandal comes at a time when teachers and police officers are facing a major health crisis, with hospitals refusing to offer medical services due to unpaid insurance claims running into billions of shillings.

At the heart of the teachers’ medical cover scheme is Minet Kenya Insurance Brokers Limited (MINET), which has been the lead insurance provider for the Teachers Service Commission (TSC), receiving a staggering Sh160 billion over the past nine years.

Who Else Is Involved?

Besides MINET, the other insurance companies forming part of the consortium include:

  • Old Mutual General Insurance Kenya Limited
  • Britam General Insurance Company (Kenya) Limited
  • CIC General Insurance Limited
  • Star Discover Life Insurance Limited

The petition filed in Parliament exposes how Bliss Healthcare Limited and Medical Administrators Kenya Limited (MAKL), both linked to controversial businessman Jayesh Saini, were brought in as a master capitator and medical administrator respectively.

Saini’s name has repeatedly been mentioned in Parliament and even in a French court, where he lost a defamation case against Paris-based Kenyan student Nelson Amenya over allegations linked to the controversial Sh104 billion Social Health Authority (SHA) system.

EXPOSED: How A Billionaire Cartel Has Controlled Teachers’ Medical Cover for Nine Years in Sh161 Billion Scandal

Billions Allocated, But No Services Rendered

Despite the government allocating Sh17.9 billion annually to TSC for medical insurance covering over 400,000 teachers, the funds are mysteriously not reaching hospitals, leading to a total breakdown of services.

How does the scheme work?

  1. Government sends billions to TSC
  2. TSC pays Minet Kenya Limited
  3. Minet funnels the money to MAKL and Bliss for “administration”
  4. Hospitals are empaneled, but funds do not reach them
  5. Hospitals refuse to treat teachers and police officers due to unpaid bills

A petition dated March 5, 2024, signed by Amos Nyasani, urges Parliament to investigate these irregular dealings, summon witnesses, and force the production of documents to expose the massive looting of public funds.

Police and Prisons Officers Also Affected

This scandal extends beyond teachers, affecting thousands of police officers, prison wardens, and security personnel protecting top government officials.

The National Treasury has an active Sh29 billion contract with MAKL, yet just like teachers, police officers and prison wardens are also being turned away from hospitals due to unpaid medical bills.

Hospitals Struggle, Medical Crisis Deepens

For the past seven months, hospitals contracted under this scheme have not received payments. More than 452,635 teachers and security officers are now without access to critical medical services.

Kenya National Union of Teachers (KNUT) Secretary General Collins Oyuu has decried the situation, calling for immediate and permanent solutions.

“It is painful seeing teachers being turned away from hospitals despite billions being allocated for their medical cover. This cycle of non-payment must end.”

Nairobi West Hospital vs. Government – A Case Study in Scandal

This is not the first time hospitals have sounded the alarm. In 2023, The Nairobi West Hospital (TNWH) threatened to stop treating police officers over an unpaid bill of Sh576 million.

  • September 30, 2023 – TNWH demanded a Sh626 million settlement
  • November 6, 2023 – The hospital received only Sh50 million
  • November 14, 2023 – TNWH issued another final warning letter
  • November 21, 2023 – The Inspector General of Police wrote to CIC General Insurance Ltd, urging intervention to prevent the crisis

In one of its letters, Nairobi West Hospital stated:

“The debt has crippled the facility financially, making it impossible to pay doctors, service providers, and suppliers.”

Will Parliament Act or Will the Scandal Be Swept Under the Rug?

The petition before Parliament is the latest attempt to break the cycle of corruption and impunity in Kenya’s medical insurance sector.

Will the National Assembly take action and expose those behind this scandal, or will it be another case of well-connected billionaires escaping justice while teachers and police officers continue suffering?

We will keep you updated as this explosive investigation unfolds.

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