Petition to Seek Suspension of 2% SHA Claims Processing Fee Filed

By The COAST Reporter

Email, thecoastnewspaper@gmail.com

A fresh constitutional petition has been filed at the High Court seeking to suspend the deduction of a two per cent Health Information Management System utilisation fee from claims submitted by healthcare providers through the Social Health Authority.

The petitioners — Nakuru-based surgeon Dr Magare Gikenyi J. Benjamin, Busia Senator Okiya Omtatah and activist Eliud Matindi — argue that the levy is unconstitutional, unlawful and amounts to double taxation.

They want the court to issue conservatory orders stopping the deductions pending the hearing and determination of the petition.

According to court papers the petitioners contend that the fee has no basis in legislation and was introduced without parliamentary approval.

“The 2% HIMS System Utilisation Fee is not based on any legislation. In any event, the 2010 Constitution architecture does not allow government to do business with its own people except through taxes and charges which are consolidated, budgeted, and appropriated,” the petition states.

The petitioners also want the court to prohibit the respondents, their agents, and any other parties from enforcing letters, circulars, gazette notices or directives authorising the deduction through SHA or any related digital platform.

Legal basis questioned

Dr Gikenyi says he discovered the deductions on April 8, 2026, while attending to patients at an SHA-accredited health facility.

He says he later sought clarification from SHA, the Digital Health Authority, the Ministry of Health and the National Treasury through a letter dated July 1 2026, but none of the institutions provided a legal basis for the levy.

The petition argues that the respondents have failed to identify the law authorising the fee or explain how the deducted funds are collected, managed and appropriated.

Dr Gikenyi maintains that Articles 209 and 210 of the Constitution permit the government to raise revenue only through taxes and charges established by law.

He describes the HIMS fee as an unlawful “charge on a charge”.

The petitioners further allege that the levy was introduced without public participation and that no research, formula or public justification was provided to explain how the two per cent rate was determined.

To date more than Ksh1.2 billion is allegedly to have been deducted.

The petition raises concerns about the scale of the deductions alleging that SHA had disbursed approximately Ksh60.7 billion in claims by July 2026.

At a rate of two per cent, the petitioners estimate that more than Sh1.2 billion may have been collected through the disputed fee.

They argue that the levy places an additional financial burden on healthcare providers, may increase the cost of medical services, and lacks transparency regarding the destination and management of the deducted funds.

The petition also alleges that the deductions may benefit unidentified private entities rather than being paid into the Consolidated Fund.

Among the constitutional provisions cited are Articles 10, 27, 43, 46, 201, 209, 210 and 232, relating to national values, equality, healthcare, consumer rights, public finance and lawful taxation.

The petitioners have asked the High Court to certify the matter as urgent, suspend implementation of the fee and fast-track the case.

The court has not yet determined whether the levy is lawful or unconstitutional