Omtatah,Doctors Challenge Two Percent Health Levy in Court
A group of petitioners including consultant surgeon Dr Magare Gikenyi and Busia Senator Okiya Omtatah has filed a constitutional case in the High Court in Vihiga seeking to stop a controversial two per cent deduction from payments made by the Social Health Authority to healthcare providers.
The fee, described as a Health Information Management System utilisation charge, is being challenged as illegal and unconstitutional. The applicants argue that the levy lacks any supporting legislation and was introduced without the necessary parliamentary approval or public participation.
The petition names the Social Health Authority, a private firm known as Finsprint Limited, the Cabinet Secretaries for Health and Treasury, the Principal Secretary for Medical Services, the Digital Health Agency, the country Revenue Authority, the Attorney General and other state agencies as respondents. According to the documents, Dr Gikenyi first noticed the deductions on 8 April 2026 while reviewing claims at an accredited facility and later wrote to relevant government offices requesting the legal basis for the charge, but received no reply.
The petitioners contend that the deduction creates an unauthorised charge on top of existing payments and therefore violates key constitutional provisions governing taxation and public finance. They state that there is no legislation nor statutory authority authorising the respondents to deduct the said two per cent HIMS System Utilisation fee from the claimed amount nor the purpose of the same. In their view, the arrangement amounts to double taxation and undermines principles of transparency and accountability in the management of public resources.
Beyond the financial impact on healthcare providers, the case raises concerns about the handling of patients’ personal data by an unknown private entity and the broader effect on the right to health. The applicants argue that the reduced payments constitute economic discrimination and compromise fair administrative action. They warn that continued deductions risk the loss of public funds and could erode confidence in the health financing system unless the court intervenes.
The petitioners are asking the court to issue immediate conservatory orders suspending the two per cent fee pending the full hearing of the case, to bar any further enforcement through circulars or administrative directives, and ultimately to declare the levy unconstitutional, null and void. The outcome of the suit is expected to have significant implications for how health information systems are funded and regulated across the country.
