MPs grill SHA CEO Mercy Mwangangi over Ksh77M legal overpayments
By Mustafa Juma, October 23, 2025Members of Parliament have put the Social Health Authority (SHA) on the spot over questionable expenditures amounting to hundreds of millions of shillings, including irregular board payments, inflated legal fees, and a stalled multibillion-shilling car park project.
The revelations emerged on Wednesday, October 22, 2025, during a session of the Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) chaired by Navakholo MP Emmanuel Wangwe, where SHA officials led by CEO Dr. Mercy Mwangangi appeared to respond to audit queries raised by the Auditor-General for the financial years 2021/2022 to 2023/2024.
According to the Auditor-General’s report, the SHA Board incurred Ksh5.83 million in meeting allowances that were not supported by attendance registers or signed minutes.
Also watch: DCI Takes Over Probe Into SHA Fraud Files
Massive legal payouts
The report also flagged legal expenses totalling Ksh247.8 million, of which Ksh91.6 million was paid for cases valued at just Ksh13.9 million, an apparent overpayment of Ksh77.6 million, contrary to the Advocates’ Remuneration Order.
Wangwe questioned the rationale behind the massive legal payouts.
“Where is the value for money when you pay Kshs 77 million to collect Kshs 13 million?” he questioned.
Committee member Martin Peters Owino (Ndhiwa) decried the misuse of funds meant for healthcare.
“If you say that the Board was paid five million, this means many deserving Kenyans were denied an opportunity to be treated,” he said.
Bishop Kosgei (Nominated) faulted the SHA’s Finance Department for failing to cooperate with auditors, noting that the Director of Finance had “let down the CEO and the institution by failing to provide proper responses.”
Also watch: Ruto Defends SHA, Denies Ghost Hospital Fraud
Bloated car park project
The committee also revisited the long-delayed multi-storey car park project, whose cost ballooned from Ksh909 million to Ksh3.97 billion, representing a staggering 337% variation from the original contract sum.
Although the previous Public Investments Committee had directed the Ethics and Anti-Corruption Commission (EACC) to investigate the project, no progress report has been tabled to date.
“There were more than two payments on the car park, which shot the budget by 37%. Make sure you tabulate all the transactions as documented in the books of account,” Wangwe ordered.
Vice-Chairperson Caleb Amisi (Saboti) criticised the SHA’s attempts to attribute audit gaps to disruptions caused by the COVID-19 pandemic, calling the excuse “tired and repetitive”.
“We are talking about billions of shillings of taxpayers’ money. The COVID-19 pandemic line is a tired excuse by government institutions that have embezzled public funds,” Amisi noted.
In her response, Dr Mwangangi acknowledged the committee’s concerns but assured members that SHA is undergoing institutional reforms aimed at improving accountability and transparency.
“We are working with available documents inherited from the defunct NHIF. The Authority is committed to accountability, and we have made significant reforms to address past weaknesses,” she stated.
The committee directed SHA to submit missing documentation and furnish evidence of its cooperation with the EACC regarding the controversial car park project.