Gatanga MP Muriu Under Investigation Over Sh500M NHIF Windfall as Colleagues Threaten Exposure

Gatanga Member of Parliament Edward Muriu has found himself at the center of a growing scandal involving billions of shillings from the now-defunct National Health Insurance Fund (NHIF), with former committee allies now threatening to expose details of his alleged corruption.

The National Assembly has been investigating over Sh33 billion siphoned from NHIF in fictitious payments through Incurred But Not Reported (IBNR)

According to reliable sources, the lawmaker is in “panic mode” as state investigations intensify into dubious hospital payments from NHIF, where he allegedly facilitated transactions in exchange for kickbacks amounting to billions of shillings.

Documents indicate that Muriu’s law firm, MMC Asafo (formerly Muriu Mungai and Company Advocates), received Sh500 million for what he has described as “legal consultancy work” with NHIF in 2018, while State House economic advisor Moses Kuria has characterized the payment as merely a “photocopying job.”

Speaking on a local TV station, Moses Kuria, a senior economic advisor to President William Ruto, claimed Muriu’s firm was paid Sh1 billion. “Do you know how much NHIF spent just doing the contract? Sh1 billion. A law firm to do a ‘photocopying job’ Sh1 billion,” Kuria said.

The MP confirmed the deal but disputed the figure, saying the government had paid the entire amount for the work done.

Kickbacks and Committee Fallout

The new revelations come as former committee colleagues have vowed to “hit back” at the Gatanga MP, claiming he was “eating alone” and that it’s now “their time” to expose his dealings.

Our sources indicate that investigative agencies are preparing to take action against the lawmaker in the coming days.

“His former committee colleagues have vowed to expose him by divulging more information,” a source close to the investigation revealed. “They claim he was benefiting alone while excluding them from the deals.”

The scandal extends beyond the NHIF contract, with allegations that the MP’s “latest German machine” was purchased with proceeds from corrupt dealings.

Contract Details and Controversy

It has emerged that the Sh500 million windfall for the First-term MP came after his law firm was handpicked for the assignment in 2018.

At that time, NHIF board chair Hannah Mureithi was accused of authorizing the payment to MMC Asafo without following proper procurement procedures, raising serious questions about compliance with regulatory requirements.

Through his law firm, then known as Muriu Mungai and Company Advocates (now MMC Asafo), NHIF contracted the MP in 2018 to draft contracts between the fund and selected healthcare providers.

The healthcare facilities were to be engaged in providing medical care and treatment services to its beneficiaries for the financial year 2018-19.

The healthcare sector contracts were allegedly based on the provisions of the Advocates Remuneration Order 2014 totaling “about Sh500 million,” according to an internal NHIF document seen by Kenya Insights.

A subsequent audit revealed troubling irregularities in the contract execution.

On November 5, 2018, MMC Asafo unilaterally revised its engagement terms to include an additional 309 contracts at an extra cost of Ksh26.75 million—without obtaining NHIF’s formal approval.

This unauthorized modification has raised further questions about whether the legal fees paid were justified and transparent.

In addition to the contract drafting, the firm also agreed to negotiate the terms with each healthcare facility and ensure proper signing of contracts at the registry.

In 2020, before Muriu’s election to Parliament, the law firm’s directors had reportedly been summoned by the Directorate of Criminal Investigations (DCI) to provide statements regarding the contract.

At that time, investigators were examining then-NHIF board chair Hannah Mureithi’s role in approving the substantial payment for “reviewing of contracts.”

Political Hypocrisy

In a seemingly contradictory stance, MP Muriu an ally of former deputy president Rigathi Gachagua, has recently emerged as a vocal critic of the Social Health Authority (SHA) and the Social Health Insurance Fund (SHIF), claiming they were “purely designed for procurement deals rather than effective healthcare reform.”

This position has raised eyebrows given his firm’s own questionable involvement in NHIF’s legal contract procurement.

Critics, including some calling for DCI investigation, have questioned how the Gatanga MP justifies his criticism of SHA/SHIF on procurement grounds when MMC Asafo’s engagement with NHIF appears to have been a procurement-driven deal itself, lacking proper procedural adherence and transparency.

“It happened under your hands in the public sector. Find out from Moses Kuria whether he will wash away the Sh104 billion that has been pocketed to deliver a dead computer system,” Muriu said, attempting to deflect attention from the NHIF scandal.

As investigations continue, political observers note that the escalating tensions between the MP and his former allies could expose further corruption within the healthcare system, potentially implicating more officials in what appears to be a widening web of corruption allegations surrounding the defunct NHIF.

The Directorate of Criminal Investigations (DCI) is reportedly reviewing the case as pressure mounts for accountability.