- The National Treasury, SHA, IRA and other state agencies have been sued over alleged failures to manage public servants’ insurance schemes and settle claims exceeding Ksh20 billion.
- The petition alleges decades of unpaid death, disability and work injury benefits affecting civil servants, teachers and security officers.
- The case seeks a court declaration that the government’s self insurance arrangement is unconstitutional and violates the Insurance Act.
The National Treasury, the Social Health Authority (SHA), the Insurance Regulatory Authority (IRA), the Public Service Superannuation Fund (PSSF) and the Public Service Commission (PSC) have been sued over alleged failures in managing statutory insurance schemes for public servants.
The claims exceed Ksh20 billion owed to families of deceased or disabled workers.
Also named in the petition are the Teachers Service Commission (TSC), the Judicial Service Commission (JSC), the National Police Service Commission, the Attorney General, the National Assembly and several leading insurance firms.
Petition accuses government of decades of neglect
The petition, filed at the High Court in Nairobi by Gitonga, accuses successive governments of failing to provide mandatory insurance cover and settle death, disability and work injury claims for hundreds of thousands of public servants over nearly two decades.
Gitonga estimates the outstanding liabilities at about Sh8.4 billion for civil servants, Ksh3 billion for police and prison officers, and at least Ksh10 billion for teachers.
According to the petition, the non-payment of the benefits stems from the government’s administration of the Group Personal Accident, Work Injury Benefits, Group Life and Last Expense insurance schemes for public servants. He is seeking a declaration from the court that the arrangements are unconstitutional.
“The petition specifically challenges, among other things, the unlawful operation of a self-insurance arrangement by the National Treasury and the Ministry of Public Service, contrary to the Insurance Act under which any person who is not a licensed insurer is expressly prohibited from carrying on insurance business,” said Gitonga.
A personal loss behind the case
Gitonga told the court that he filed the case after his sister, a TSC employee, died while still in service. He claims her statutory insurance benefits were never paid to her children despite repeated follow-ups, forcing him to assume responsibility for their upbringing.
READ:
He argues that his experience reflects a broader problem affecting public servants across government institutions.
“This failure has caused direct personal and continuing financial hardship to my sister’s children, for whose welfare I remain personally responsible,” said Gitonga.
Billions in premiums and claims outstanding
Court documents indicate that civil servants’ insurance premiums amounting to Ksh20.28 billion were payable between April 2022 and April 2025, but only Ksh12.59 billion was remitted, leaving unpaid premiums of about Ksh7.69 billion. The petition also claims that police insurance premiums worth about Ksh10.67 billion remain outstanding.
The suit further states that the alleged failures have resulted in unpaid claims exceeding Ksh20 billion, leaving many public officers without the statutory protection they are entitled to. It cites a backlog of 1,968 Group Personal Accident and Work Injury Benefit claims valued at Ksh3.96 billion, alongside 874 Group Life and Last Expense claims worth Ksh1.20 billion that remained unsettled before 2022.
According to the petition, a further 822 claims valued at Sh2 billion accumulated during the 2022/23 financial year, followed by another 706 claims worth Ksh1.59 billion in the 2023/24 financial year.
Gitonga also contends that Parliament continued appropriating billions of shillings for insurance cover even as many claims remained unsettled, arguing that the alleged failures violated the constitutional and statutory rights of public servants and their dependants.
By Jonathan Mwinzi
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
