✕

Judge orders NHIF, Mututho firm to seek out of court settlement

National
By Kamau Muthoni | Apr 22, 2024
Former MP John Mututho. [File, Standard]

The High Court on Monday ordered the National Health Insurance Fund (NHIF) Board to consider settling a multi-million dispute with a firm owned by former MP John Mututho.

Justice Josephine Mong'are on Monday directed that the board should honour its end of the bargain by signing the contract issued to Jomec Limited for treating alcoholics and drug addicts.

Jomec had moved to court seeking to have the NHIF board and Chief Executive Officer Elijah Wachira jailed for disobeying court orders.

In the case, Jomec claimed that the national health insurer had declined to obey court orders issued in January 2024.

The orders were issued following a consent entered between the private firm and NHIF.

NHIF agreed to pay the firm Sh188 million as a one-off payment for medical services.

However, Jomec's lawyer Kimani Wachira told the court that NHIF was defiant which prompted his client to sue.

"No legal justification has been tendered by the Respondent and the contemnor for their disobedient conduct, and in the absence of legitimate grounds, the respondent and contemnor's disobedience may properly be described as being contemptuous," argued Wachira.

Jomec is a Level 3b health facility. It is licensed by the Kenya Medical Practitioners and Dentists Board as a nursing home.

In the case, the court heard that NHIF had relied upon the decision by the Kenya Kwanza regime to close shop in order to pave the way for the new pet project, Social Health Insurance Fund (SHIF).

"In alignment with these guidelines, the NHIF Board has aligned the contracting authority to its mandate to wind up the Fund under the First Schedule of the Social Health Insurance Act. As a result, the Fund is unable to enter into a new contract for the provision of healthcare services. However, your client Messrs Jomec will be engaged during the next contracting cycle," NHIF wrote to Jomec.

In court, Jomec argued that NHIF was aware of its existing obligations and concessions in court with other parties.

The firm asserted that the transition to the new health system had not commenced, hence the insurer ought to honour its agreement.

In his supporting affidavit, Mututho stated that although Social Health Insurance Act came into place on November 22, 2023, the NHIF board was still engaging health suppliers and entering into contracts as late as two months ago.

He told the court that the uncertainty created by the insurer had dealt his firm a huge blow as it had also engaged other contractors for service delivery.

Share this story
Basketball coaches and PE teachers imparted with new skills
The full-day immersive training focused on strengthening youth development through sport.
Gor Mahia edge stubborn APS Bomet to maintain perfect start
Alpha Onyango netted the winner in the 84th minute for K’Ogalo to help the record Kenyan champions bag their second win of the season.
Mvurya says Sports Act amendment will help to bring major reforms
Kenya is reviewing its sports and anti-doping laws in a fresh push to reform the sector and address challenges like doping and poor governance.
Gor Mahia seek to maintain good start in SportPesa Premier League
Defending champions Gor Mahia will be out to maintain their winning start to the season when they clash with APS Bomet in Homa Bay on Saturday.
Coe says Kenya fully supports preps for 2029 Nairobi event
World Athletics President Sebastian Coe says Kenya has secured the government’s full support to prepare Nairobi for the 2029 World Athletics Championships.
.
RECOMMENDED NEWS