MP questions Uhuru's appointment of Lewis Nguyai as NHIF chair

President Uhuru Kenyatta’s appointment of former Kikuyu MP Lewis Nguyai as chair of the National Hospital Insurance Fund (NHIF) board has generated controversy, with an MP citing a conflict of interest.

What is generating the conflict of interest is the fact that Mr Nguyai was the owner of the collapsed Mediplus Limited, a medical insurance company that was contracted by NHIF at one time to offer government employees a medical cover.

But Mediplus did not meet its end of the bargain, forcing some hospitals to move to court.

On Friday, Nominated MP Godfrey Osotsi said Mr Nguyai’s appointment should be revoked if the President means well for the country and the success of the Universal Health Care (UHC).

UHC is one of the President’s legacy plans that he wants to achieve before he retires in 2022 after serving his second and last term.

“This appointment is a clear case of conflict of interest,” Mr Osotsi said. “Sometime back the NHIF had issues with hospitals and Mediplus was one of them.”

The appointment of Mr Nguyai, the former Local Government assistant minister for, was announced in a special Gazette notice of February 23. He is set to take over from Ms Hannah Muriithi, who has been at the helm of the NHIF board since April 2018.

Mr Osotsi wants the Health committee of the National Assembly to block the appointment.

“It will be unfortunate if nothing is done,” the lawmaker said.

“The President has the prerogative to appoint senior government officers but issues of conflict of interest, especially at strategic government installations like the NHIF, should not be allowed,” he said.

Aga Khan case

Agha Khan Hospital is one of the local medical service providers that have had issues with Mr Nguyai. In 2007, Agha Khan sued the collapsed Mediplus and Mr Nguyai, its former chief executive officer, seeking payment of Sh18 million from the company.

High Court Judge Luka Kimaru entered a summary judgment and ordered Mediplus and the then Kikuyu MP to settle the debt.

Mr Nguyai guaranteed in writing on May 28, 2007 that he would pay Sh18 million. He issued a cheque of Sh5 million but it was not honoured because his bank account had been closed.

Aga Khan again moved to court on March 14, 2012 seeking enforcement of the debt repayment order. Justice Jonathan Havelock directed that the court file be reconstructed and kept in the strong room at the Milimani Commercial Court registry.

The judge was informed that it was the second time the court file was being reconstructed after it went missing from the court registry for a considerable period.

But on Friday, Mr Nguyai told the Nation that the issue is now water under the bridge.

“The matter was withdrawn from the court and settled,” Mr Nguyai said. 

Mr Shiraz Magan, the lawyer who acted for Aga Khan, said the company was denied the fruits of the judgment for four years and that efforts to attach the assistant minister’s assets were unsuccessful.

Justice Kimaru ruled in 2007 that Aga Khan had established that it was entitled to a summary judgment and directed that it be paid the lump sum and interest on the principal amount at court rates.

[email protected]