Health service provider sues NHIF for contempt of court

Health service provider sues NHIF for contempt of court

The board and the Chief Executive Officer (CEO) of the National Health Insurance Fund (NHIF) have been sued for contempt of court over alleged failure to honour an agreement to renew their contract as per a court agreement in February 2024, at the Milimani High Court, Commercial and Tax Division.

In a contempt of court application, Jomec Limited wants NHIF Chief Executive Officer Elijah G. Wachira summoned before the court to show cause why he should not be committed to civil jail for blatantly failing to comply with the consent orders of the court issued on February 6, 2024.

“The court issued an order compelling the respondents and the contemnor to issue a new service delivery agreement for the provision of medical health services in compliance with the court's consent orders,” reads the court papers.

In the application, they argue that no legal justification has been tendered by the respondents and the contemnor for their disobedient conduct, and in the absence of legitimate grounds, the respondents may be described as being contemptuous.

NHIF, and its CEO Elijah Wachira have been named as respondents in the case.

The company further argues that it will be subjected to extreme hardships and injustice due to the respondent’s unlawful conduct.

In a notice of motion, Jomec Limited argues that parties entered into negotiations early this year and agreed that the service provider waives a sum of Ksh.166 million and further agreed that NHIF will issue the company with a new service delivery contract for execution. 

NHIF and Jomec also have agreed that NHIF shall transfer an all-inclusive sum of over Ksh.188 million in full and final settlement of their dispute payable in one installment. However, it is Jomec's Limited argument that NHIF has only complied partly and has failed to give them any contracts for execution. 

‘’The applicant has severally penned several letters addressed to the respondnts asking it to comply with the consent orders …regrettably the respondents have blatantly refused to issue the applicant with tyeh sanctioned contracts or tender a candid explanation for their failure,” reads court papers.

The company claims that the NHIF boss played a pivotal role in the negotiations that led to the consent.

‘’It is noteworthy  that in compliance with the consent orders , the applicant on its part has complied with all the necessary regulations and legal framework necessary for the insurance of the contracts, a fact that the respondents is well aware of,” reads the affidavit of John Njenga Mututho.


Tags:

NHIF Citizen TV Citizen Digital Contempt of Court Jomec Limited

Want to send us a story? SMS to 25170 or WhatsApp 0743570000 or Submit on Citizen Digital or email wananchi@royalmedia.co.ke

Leave a Comment

Comments

No comments yet.

latest stories