The Milimani High Court, Commercial and Tax Division has filed a contempt of court lawsuit against the board and the CEO of the National Health Insurance Fund (NHIF) for allegedly breaking a court order to extend their contract in February 2024.
Jomec Limited has filed a contempt of court application, requesting that NHIF Chief Executive Officer Elijah G. Wachira be called before the court to explain his blatant disregard for the court's consent orders dated February 6, 2024, and to provide justification for not being placed in civil jail.
“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.
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In the application, they contend that neither the respondents nor the contemnor have provided a legal defense for their disobedient behavior, and that the respondents could be characterized as discourteous in the absence of good reason.
The case names NHIF and its CEO, Elijah Wachira, as respondents.
The company also claims that because of the respondent's illegal actions, it will suffer from severe injustice and hardships.
Jomec Limited contends in a notice of motion that early in the year, the parties engaged in negotiations wherein the service provider agreed to waive Ksh. 166 million, and that NHIF would provide the company with a new service delivery contract to be executed.
Additionally, NHIF and Jomec have decided that NHIF will send over Ksh. 188 million as a complete and final settlement of their dispute, to be paid in one installment. Jomec's Limited contends, however, that NHIF has only partially complied and has not provided them with 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.