Vihiga High Court Declines to Suspend 2% SHA Claims Deduction

• The Vihiga High Court declined to issue interim orders suspending a 2 percent HIMS System Utilization Fee deducted from claims payable to healthcare providers under the Social Health Authority (SHA).
• The court cited a missing supporting affidavit in the application as the reason for declining the request.
• The petitioners argued that the deductions amount to an unlawful charge and that there is no legislation or statutory authority allowing the levy.
• The court emphasized the need for sworn evidence to support claims, rather than relying on claims contained in a certificate of urgency or grounds on the face of a motion.

However, Justice Nyakundi noted that the dispute involves contested questions of fact, including when and by whom the fee was introduced, the legal instrument supporting it, and the role of Finsprint Limited.

The Vihiga High Court recently issued a ruling that has significant implications for healthcare providers in Kenya. On August 14, 2026, Justice R. Nyakundi delivered the judgment, declining to issue interim orders suspending the 2 percent HIMS System Utilization Fee deducted from claims payable to healthcare providers under the Social Health Authority (SHA). The petitioners, led by Dr Magare Gikenyi Benjamin and Eliud Matindi, had sought conservatory orders to halt the deduction pending the hearing and determination of their petition. However, the court cited a missing supporting affidavit in the application as the reason for declining the request.

The dispute centers around the introduction of the 2 percent fee without a legal or statutory basis, raising concerns over the use of health providers' funds and patient data. The petitioners argued that there was no legislation or statutory authority allowing the levy, and that the deductions amount to an unlawful charge. However, Justice Nyakundi noted that the dispute involves contested questions of fact, including when and by whom the fee was introduced, the legal instrument supporting it, and the role of Finsprint Limited. He emphasized that such facts must be presented through sworn evidence, rather than claims contained in a certificate of urgency or grounds on the face of a motion.

The Vihiga High Court's ruling has significant implications for healthcare providers in Kenya. The court's decision to decline the petitioners' request for conservatory orders means that the 2 percent HIMS System Utilization Fee will continue to be deducted from claims payable to healthcare providers under the SHA. This may impact their clients' claims and compliance with regulatory requirements, making it essential for lawyers advising healthcare providers in Kenya to closely monitor the situation. The court's emphasis on the need for sworn evidence to support claims also highlights the importance of proper documentation and procedure in legal proceedings.

Lawyers advising healthcare providers in Kenya should watch for the Vihiga High Court's ruling on the validity of the 2% HIMS System Utilization Fee, which may impact their clients' claims and compliance with regulatory requirements.

Source: Original reporting via Capital FM