The controversial AAR – Nairobi County Government insurance deal is ongoing, kanairo.city has learnt.

In April 2021, Nairobi County government workers threatened to down tools over lack of medical cover.

The workers’ lobby, Kenya County Government Workers Union, has accused the local government of failing to pay their insurer, AAR Insurance Kenya, leading to an impasse between the two parties.

In 2018, the auditor General’s report revealed that the County paid more than Sh652.7 million in excess of the medical scheme’s contract whose cost kept going up despite reduction of staff numbers.

“Although the total payment made so far to AAR insurance Kenya Limited is Sh1.7 billion, no explanation has been given for paying Sh652,786,602 in excess of the contract sum of Sh1.07 billion,” the report said in part.

The Auditor General’s report up to July 2018 shows that despite the County parting with the huge sum to cater for insurance cover for its employees, there was no value for money.

In February 2018, Mlango Kubwa MCA Patricia Mutheu moved a motion on the floor of the chamber prompting then Governor Mike Sonko to reconsider the deal with the firm and instead channel the funds to building capacity of county health facilities.

The MCA had argued that despite the County parting with Sh1 billion annually to cater for 12,000 employees, they were receiving average medical cover.

The threat to go on strike in April 2021 was just about the same issue of lack of value for money.

“AAR and City Hall must resolve their issues without putting the lives of our members as a negotiating stake. Respect the sanctity of life,” Kenya County Government Workers Union secretary-general Festus Ngari said.

He added, “The union observe that while the contract seems highly inflated the service provider should seek other ways of debt collection as opposed to suspending the cover.”

That time Governor Ann Kananu defended herself that she was working to make the payments.

However, as posted by the Union, it seems the looting through the Medical Insurance is ongoing.

Probe the county

Waithaka MCA Antony Kiragu in April called on the DCI and EACC to probe the deal between the insurer and the county government.

The legislator claimed some county officials were making money from the AAR contract.

“We have seen them (the Executive) playing hanky panky with the health cover of staff and the county has lost 29 staff because they cannot access the medical cover. Some county officials were playing acrobatics, trying to make money from the AAR contract,” Kiragu said.

“For this reason, I will be personally writing to the EACC and DCI to investigate the AAR-City Hall deal,” he added.

The shady deal continues as senior county official pocket some money from it.