Nairobi MCAs have questioned the circumstances surrounding the selection of APA Insurance to provide medical cover for county employees at a cost of about Sh2.5 billion.
Members of the County Assembly’s Labour and Social Welfare Committee, chaired by Kayole North MCA Wachira Wa Iria, questioned county officials over the procurement process and the decision to migrate from the Social Health Authority (SHA) arrangement.
The committee quizzed the Chief Officer for Human Resource to explain why the county opted for a new insurance arrangement after its employees had been enrolled under the SHA scheme.
The county enrolled its staff under SHA in December 2025 at a cost of about Sh1.3 billion, following the termination of its medical insurance arrangement with Jubilee Insurance.
The MCAs are now questioning why the county entered into another arrangement estimated at Sh2.5 billion, which presents an additional expenditure of about Sh1.2 billion compared with the previous SHA arrangement.
The tender NCC/PSM/T/001/2026-2027, was advertised as an open tender, with bids required to be accompanied by a Sh40 million tender security.
Four insurance companies submitted bids for the contract with
APA Insurance submitting a bid of approximately Sh2.5 billion, while Fidelity Shield Insurance quoted Sh2.8 billion. First Assurance Company Limited submitted a bid of about Sh2.1 billion, while AAR Insurance Kenya quoted approximately Sh3.1 billion.
However, the MCAs questioned whether the procurement process was conducted in a fair and competitive process.
Some members raised concerns that the process may have been structured in favour of the eventual successful bidder.
The committee is expected to further scrutinise the tender documents, evaluation report, technical and financial scores, reasons for the selection of the successful bidder and the terms of the resulting contract.
Nairobi County has previously faced legal challenges over the procurement of employee medical insurance.
This includes a dispute involving Tender No. NCC/PSM/T/001/2024-2025, relating to comprehensive medical insurance, group life and last expense cover.
The contract was valued at Sh1.495 billion, with the Public Procurement Administrative Review Board dismissing a request for review and directing the county to proceed with the procurement process.
The latest questions by the MCAs renews focus on how Nairobi County procures medical insurance for its workforce, particularly the justification for moving between different health insurance arrangements and the value obtained by taxpayers.
With the staff now standing at over 18,000 employees,the MCAs also raised concerns over the boarding of principal members and their dependants.
The committee is seeking clarity on whether the Sh2.5 billion APA contract offers significantly expanded benefits compared with the previous arrangement and whether the additional expenditure is supported by a corresponding increase in coverage, benefits and services for county employees.
The county officials struggled to explain the transition arrangements and the contractual obligations arising from the previous SHA arrangement.
The County still owes SHA Sh800 million with the legislators worried of the ballooning pending bills in insurance covers.
The MCAs also questioned the choice of M-Tiba as the third-party/digital health administrator, given its previous use under Jubilee.
M-Tiba is a digital health platform that connects members to health insurance schemes while enabling users to manage their medical benefits.
They questioned why the county had opted to retain a platform they said had attracted complaints and challenges under the previous arrangement.
Chief Officer for Human Resource Janet Opiata defended the procurement, telling the committee that APA Insurance emerged successful after meeting all the requirements and offering what the county considered a better deal.
Ms Opiata maintained that the selection was based on the outcome of the procurement process and the benefits offered by the insurer, rather than any predetermined decision.
David Mumo, APA’s Director of Health Business, also appeared before the committee as the insurer responded to questions surrounding the contract and its proposed administration of the scheme.
The county had enrolled its employees under the SHA medical scheme in December 2025 at a cost of about Sh1.3 billion, following the termination of its contract with Jubilee Insurance.
