I woke up to misleading reports circulating on social media, particularly on X (formerly Twitter), suggesting that Sidian Bank has been involved in swindling funds belonging to the Social Health Authority (SHA).
As a financial journalist, as well as an economist, I find the attacks on the bank to be unfounded, and I will try to give some reasons why. I know the temperatures are high right now, but that shouldn’t cloud our reasoning and judgment.
Such claims are not only false but also damaging, both to the integrity of institutions tasked with safeguarding public resources and to the reputation of a bank that has demonstrated compliance with the strictest standards of financial regulation in Kenya.
The truth, which needs to be clearly and firmly stated, is that Sidian Bank is not, and has never been, in charge of holding or managing SHA funds. This is public knowledge for those who care to take a moment and read. Rather, Sidian Bank is one of six financial institutions licensed by the Central Bank of Kenya (CBK) to facilitate collections of employer contributions towards the Social Health Insurance Fund (SHIF).
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For your information, these banks are KCB, Sidian, Co-operative Bank, Equity, Absa, and DTB. Their selection was informed by consultations with employers and guided by CBK approval, ensuring a transparent and secure framework for remittance processing.
It is critical to understand the role of banks such as Sidian in the SHIF framework. Sidian Bank acts as a collection point, nothing more, nothing less. Employers making SHIF contributions on behalf of their staff are free to choose from the six approved banks. Once the contributions are received, the bank immediately channels the funds directly into SHA’s designated accounts.
At no point does Sidian Bank, or any of the other participating banks, retain, invest, or disburse SHIF contributions. The bank is essentially a conduit, facilitating smooth, secure, and efficient transfers into the Social Health Authority’s custody.
This clarity is important because the misleading reports imply that Sidian Bank somehow has custody of SHIF money or that it has discretion in its use. Nothing could be further from the truth.
The SHA, under the leadership of Chairperson Dr. Abdi Mohamed, has confirmed that it is solely responsible for managing and disbursing SHIF funds. The Authority maintains its own accounts and systems for disbursement, which are completely separate from the banks designated for collections. This separation of roles is deliberate, reinforcing the accountability of SHA while limiting banks to their basic function of remittance processing.
Therefore, it is inaccurate and unfair to attempt to associate Sidian Bank, or any of the five other CBK-approved banks, with alleged mismanagement of SHA funds. To do so is to fundamentally misunderstand how the system has been structured.
It is also worth emphasizing that the inclusion of Sidian Bank among the six designated institutions was not arbitrary. Employers were actively consulted in the process, and their preferences informed the final list of banks. This means that Sidian’s role reflects the real choices of employers who found it convenient and reliable to use the bank for remittance purposes.
Moreover, CBK’s licensing and oversight provide further assurance of compliance. Banks in Kenya operate under stringent supervision, especially when handling sensitive remittances tied to national programs such as SHIF. Sidian Bank’s participation is therefore not only legitimate but also demonstrative of its standing as a trusted partner in the financial ecosystem.
For this reason, the public needs to distinguish between facts and falsehoods. Social media, while a powerful tool for information sharing, is also fertile ground for misinformation. When baseless claims are amplified without verification, they risk undermining public confidence in critical institutions and processes.
The launch of SHIF is a historic milestone for Kenya, aimed at strengthening universal health coverage and ensuring equitable access to healthcare for all. Although we must agree that the recent revelations of misuse of funds, with some being sent to ghost health facilities, are not something that we anticipated. We must all unite to fight corruption and the open looting of our public resources.
We are busy fighting Sidian when those who are misusing the funds are smiling because they know that now the attention has moved away from them to a party that has nothing to do with what is happening.
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