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
Osimhen inspires Nigeria into AFCON knockouts after dramatic win over Tunisia
Victor Osimhen produced a commanding display as Nigeria became the second team to qualify for the AFCON 2025 knockout stage following a tense 3-2 victory over Tunisia
Okello's late penalty miss leaves Uganda and Tanzania locked in AFCON 2025 stalemate
Uganda were left to rue a painful missed opportunity after Allan Okello failed to convert a late penalty as the Cranes were held to a 1-1 draw by East African rivals Tanzania
Mane rescues AFCON draw for Senegal against DR Congo
Sadio Mane's equaliser earned 2022 champions Senegal a 1-1 draw with the Democratic Republic of Congo in their heavyweight Africa Cup of Nations clash on Saturday.
History as Kisumu hosts first beach football camp
The four-day event organised by Oray Football Academy, held on December 17-20 at Rapogi Primary School in Seme, marked the official introduction of the sport to Western Kenya.
Kenya's cross country squad tipped to roar in World Cross
AK President Tuwei is confident the team headed to the World Cross will put up a strong show again.The team which is in camp in Kigari did not break for Christmas.
.
RECOMMENDED NEWS