NPS under scrutiny over Ksh.220M delayed police insurance payouts, stalled projects

The government is on the spot over the delayed remittance of funds to insurance companies responsible for providing group life cover and work injury benefits for police officers killed or injured in the line of duty.

In a heated session before the National Assembly’s Public Accounts Committee (PAC), National Police Service (NPS) officials struggled to explain why families of officers who die in the line of duty have to wait up to three years to receive their compensation.

The insurance company awarded the contract, but blamed the delay on the government’s failure to remit funds on time.

According to audited financial statements for the 2022/2023 financial year, claims amounting to Ksh.220 million remain unsettled.

Members of Parliament questioned officials from both the NPS and the insurance company over the delays and frustrations in accessing compensation funds, some of which take up to three years despite contractual obligations that require payment within five days of notification and submission of all required documents.

“We want to understand, you have a contract, you have signed a contract. Why not meet the obligation as per the contract timelines and specifications?” Aldai MP Marianne Kitany asked.

Teso South MP Mary Emase added, “Is it about the claimant failing to submit documents or is it exchequer issues to pay for the insurance? What is the main cause of this?”

Britam official Bernard Murage in his response, said, “Our main constraint is actually the premium. For us to be able to run efficiently, the first thing we require is that insurance is a cash-and-carry service—you pay, you get the full service.”

The Auditor General’s report indicates that as of November 2023, the insurer had not paid over Ksh.220 million owed to officers killed in the line of duty.

The insurer claims 97 cases amounting to Ksh.206 million have been settled, with only three cases worth Ksh.6 million still in processing.

“I’m very sure that without summoning you, you will not have paid this money. I’m very sure that even the next one, you will pay only when we summon. We will be summoning and helping the accounting officer to make sure that you pay, because all the pressure is with the accounting officer,” PAC Chairman Tindi Mwale stated.

Funyula MP Wilberforce Oundo added, “They expose themselves to the dangers of life, yet the government cannot pay the premiums. Today, when they die, their children, wives, and husbands languish in poverty, yet they have given exemplary service to this country. What a shame.”

The team was also questioned over four stalled Administration Police Service projects, which are at various stages of completion despite government payments exceeding Ksh.38 million.

MPs scrutinised a project involving a three-storey building of 24 units and a mess, initially budgeted in 2006 at Ksh.64 million.

The first contract was terminated after the contractor breached terms, with Ksh.23 million already paid. A second contractor was later awarded the project at Ksh.114 million.

“In the course of the original and the retendering, we are talking of a difference of Ksh.73 million. Is it fair to say the taxpayer lost Ksh.73 million on this project?” Posed Rarieda MP Otiende Amollo.

NPS Head of Accounting Unit Samuel Thiongo responded, “There was no loss of funds. The increment was caused by a change of scope of work; the scope increased in retendering.”

MPs also raised concerns over various construction works at different police stations, questioning whether the National Police Service received value for money.