Sh1.2billion police hospital idle amid officers’ insurance struggles
As fully equipped Sh1.2 billion National Police Service (NPS) Level IV Hospital located along Mbagathi Way in Nairobi is lying idle months after being handed over by the Kenya Defence Forces even as its officers continue to suffer after a consortium of insurance companies suspended services over non-remittance of premiums by the government.
Lately, on Thursday, April 2, 2026, over 138,000 officers from the National Police Service (NPS) and Kenya Prisons Service, along with their dependants were successfully transitioned onto a new government‑backed medical insurance scheme known as Usalama Cover, officials announced during a launch event in Nairobi.
Unveiled under the Social Health Authority (SHA) and the Public Officers Medical Scheme Fund (POMSF), the Usalama Cover is designed to provide comprehensive health care benefits to uniformed officers who previously faced challenges accessing reliable medical services.
Health Cabinet Secretary Aden Duale described the rollout as a major milestone in Kenya’s Universal Health Coverage (UHC) agenda, noting that the scheme will help ensure officers and their families receive quality health care with minimal financial burden. The cover includes outpatient and inpatient care, dental and optical services, emergency treatment, specialised care and routine medical check‑ups.
Interior Cabinet Secretary Kipchumba Murkomen emphasised that uninterrupted healthcare is critical for the wellbeing and effectiveness of security personnel, saying access to health services supports national security by keeping officers healthy and able to serve.
Worse still, senior bureaucrats within government and powerful cartels controlling the medical sector and the lucrative NPS medical cover deals have been accused of frustrating its operationalisation of the multi-billion medical establishment to rake in billions from medical and life cover contracts.
The hospital was constructed under the supervision of the military and handed over to then Interior Cabinet Secretary Prof Kindiki Kithure (now Deputy President) by his the Defence counterpart Aden Duale, who is now at Environment, on May 17, 2024.
Auditor General Nancy Gathungu in her 2023/24 financial audit report has expressed concern that despite the completion of the construction of the much-needed facility in the 2022/23 financial year, the hospital, which started recruiting staff, is yet to start operations.
“The construction and equipping of the National Police Service (NPS) Mbagathi Hospital was done under the supervision of the Ministry of Defence at a cost of Sh1,233,628,135,” Gathungu says in her audit report.
“The construction and equipping of the Hospital were completed in the 2022/2023 financial year. Despite the Hospital having been done and the commencement of recruitment of hospital staff, the Hospital was not in operation at the time of the audit in November last year,” she adds.
In her report, Gathungu indicates that Sh833,628,135 is yet to be paid, while an initial amount of Sh400 million was paid.
The new revelation comes at a time Gathungu also unearthed anomalies in the Sh5 billion insurance cover for the employees of the National Police Service and Kenya Prisons Service (KPS).
In the report for the financial year 2023/2024, Gathungu regretted that there were anomalies in the entire contract despite it being extended for a further three months to March 2024 at a premium of Sh1.2 billion.
The cover, which covered officers beginning January 1, 2023, to December 31, 2023, and which catered for 141,961 persons (NPS 109,557 and KPS -32,404) comprised of the Group Life Cover, Work Injury Benefits Act (WIBA) and Group Personal Accident Cover (GPA).
According to the report, a review of insurance records reveals anomalies in various premiums. With regards to Group Life Benefits, the report shows that although the contract provides that upon the death of a member, the member declared next of kin shall be paid a lump sum compensation of five years’ annual basic salary, at the time of audit in the month of November, 2024, the insurer had not paid 21 claims totalling Sh43.5 million.
This the report says is contrary to the contract sum terms that state that claims shall be paid within five days after notification and provision of all documents.
On injuries that occurred out of an accident or as a result of illness as provided for under GPA, the contract says that such members shall be entitled to compensation for loss of gross salary up to a maximum period of two years’ subject to the prevailing Human Resources (HR) Policy at the time of injury or illness.
However, the report reveals that insurance records at the time of the audit in November 2024, the insurer had not settled 262 unpaid injury GPA claims despite having been notified.
Further, the report states that although the contract provides that death under WIBA or as a result of occupational accident be compensated at a rate of eight years, the gross salary of the beneficiary records provided for audit revealed the insurer had not settled two death claims.
“ln the circumstances, management did not adequately monitor the contract to ensure that the contract terms are complied with and ensure there is value for money and benefits to members from the contract,” the report states.
