Gov’t orders inquiry into NHIF Sacco amid members’ refund disputes

Gov’t orders inquiry into NHIF Sacco amid members’ refund disputes

NAIROBI, Kenya, Sept 22 – The State Department for Co-operatives has ordered an inquiry into the National Hospital Insurance Fund (NHIF) Sacco Society Limited to examine its financial condition, governance, membership and operations.

The inquiry, contained in Gazette Notice No. 15183, will also examine the Sacco’s by-laws and the conduct of current and former management committee members and officers.

The exercise will be conducted by Silas Okoth Dede, Assistant Director for Co-operative Audit at the State Department for Co-operatives, and Grace Mwihaki Gichuhi, Senior Co-operative Officer.

The government order comes as NHIF Sacco has faced claims before the Co-operative Tribunal from former members seeking refunds of money held by the society.

In a judgment delivered on February 27, 2025, the Tribunal ordered NHIF Sacco to refund Sh629,500 to Ruth Waithira Githei after finding that she had withdrawn from the Sacco in September 2021.

In a separate case, the Tribunal ordered a Sh629,500 refund to Florence Wanja Kariru after the Sacco acknowledged her withdrawal and indicated that her share refund would be considered.

The Tribunal also ordered NHIF Sacco to refund Sh543,500 to Lydia Wairimu Kinyua, who had withdrawn from the Sacco in September 2021.

Another former member, Jane Wanjiku Mabuu, was awarded Sh277,500 after the Tribunal found merit in her claim.

The inquiry has been authorised under Sections 58 and 73 of the Co-operative Societies Act, which allow the Commissioner for Co-operative Development to examine a society’s by-laws, financial condition, operations and the conduct of current or former officers and members.