Kenbright, a major player in actuarial and financial services, has refuted allegations linking the firm to the alleged Sh21 billion suspicious payments by the national insurer, NHIF. These claims, the subject of a Parliamentary inquiry, were made by fraud risk analyst and former Treasury internal auditor Bernard Muchere, who appeared before the National Assembly’s Petitions Committee on Tuesday.
In response, Kenbright has labeled Muchere’s assertions as “disinformation.” The firm’s Board Chairman, Paul Gondi, emphasized that maintaining reserve accounts is a globally accepted best practice. “The laws of Kenya mandate that all insurance firms, including medical insurers, hold such reserves,” Gondi stated.
Kenbright clarified that the reserve accounts, including the Incurred But Not Reported (IBNR) claims, are essential for a transparent financial picture and comply with International Financial Reporting Standards (IFRS). “The claim that NHIF should not have set aside claim reserves is a deliberate misrepresentation. NHIF’s actions in setting aside proper reserves in 2021 were in line with international best practices,” the statement read.
Gondi also urged the Insurance Regulatory Authority (IRA), The Actuarial Society of Kenya (TASK), and the Media Council of Kenya (MCK) to focus on public education regarding financial literacy.
Muchere’s petition suggested that the ‘fake’ claims were fabricated through IBNR reserves, a mechanism used by insurers to account for claims that have not yet been reported. He noted that IBNR reserves were absent in audited financial statements for previous years but appeared in the financial year ending June 2022.
“This brings to question, the authenticity of the arbitrary cumulative figures of Sh19,972,497,763 purportedly brought forward from the financial years preceding 2021/2022 and the source of data, the basis for the IBNR claims.”
MPs have invited the firm and NHIF top management to appear before it over the claims.
