The Immigration Department has cancelled a multi-billion-shilling tender for compulsory medical insurance for foreigners visiting the country.
The move follows concerns raised over transparency and fairness in the procurement process.
Floated on December 20, 2024, as part of the Social Health Insurance Act 2024, the tender made medical coverage mandatory for foreigners visiting Kenya.
However, the move caused an uproar from local insurers and procurement regulators who argued that the tender allowed only a handpicked group of insurers to bid.
Consequently, Immigration Principal Secretary Julius Bitok stated in a letter to bidders, dated January 17, 2025, that the restricted tender had been cancelled.
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Uproar Over the Immigration Tender
Following the tender advertisement, the Public Procurement Regulatory Authority (PPRA) raised legal concerns, citing violations of procurement laws.
Consequently, PPRA Director-General Patrick Wanjuki in a letter advised against proceeding with the tender in its current form.
“It is our considered view that the subject tender cannot be progressed to its logical conclusion in its current form, and you are therefore required to take due regard of our observations,” said the director in a letter.
This controversy comes amid a significant surge in international arrivals.
According to Kenya’s Tourism Ministry, the number of foreign visitors grew by 35.4% in 2023, reaching 2.08 million.
Therefore, with the rising volume of tourists and expatriates, the potential market for mandatory health insurance represents a lucrative business opportunity, making the fairness of the tender process even more critical.
Also Read: Kenyans to Pay Mandatory Ksh5,600 to Visit Zanzibar Under New Rules
Zanzibar Mandatory Medical Insurance Fee
Zanzibar implemented a similar law in September 2024, requiring all visiting individuals to pay $44 (Ksh5,600) at the border for mandatory medical insurance coverage.
The government of Zanzibar implemented this fee to enhance healthcare access for travellers during their stay on the island.
The insurance, introduced as a compulsory requirement, applies to all visitors regardless of whether they possess personal travel insurance. This regulation aimed to provide immediate medical assistance for any health issues tourists may experience while in Zanzibar.
Under the new rules, foreign travellers were obligated to purchase the insurance exclusively from Zanzibar Insurance Corporation (ZIC), a state-owned enterprise.
Consequently, the stipulation drew mixed reactions, with some expressing concerns about the lack of flexibility in choosing private insurance providers.
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