MPs have given the KES104.8 billion Safaricom-led project on the provision of healthcare services a clean bill of health.

This endorsement sets the stage for the Safaricom-led consortium that includes Apiero Ltd and Konvergenz Network Solutions Ltd to operationalize the Social Health Insurance Act, No. 16 of 2023 that established the Social Health Authority (SHA).

According to the Ministry of Health, Kenya is set to edge closer to achieving Universal Health Coverage with the launch of SHA today, 1st October, 2024. SHA, which will replace the National Hospital Insurance Fund, aims to provide affordable, accessible, and quality healthcare services. Safaricom aims to digitalize healthcare services, thereby enhancing efficiency and data management.

"The Ministry of Health, however, presented the formal clearance by the Attorney-General thereby complying with all the legal requirements that were intended to safeguard public money through an assurance that there is value for money in any government transaction," Committee Chairman, Robert Pukose, MP Endebess stated.

According to Pukose, the House questioned the role of Safaricom within the consortium, particularly why it was designated as the lead partner. In response, Safaricom stated that it will be overseeing the entire project, ensuring that all the "partners adhere to the contract’s terms and deliver their respective components as per the agreed scope."

Safaricom's technological advantages, including expansive 5G network was cited as one of the reasons why the Ministry of Health found it suitable to engage the telco giant.

"These factors made Safaricom the most suitable partner for a large-scale project that requires robust and reliable digital infrastructure." However, a total of 4,065 hospitals in Kenya are set to face difficulties with power and internet access, the Ministry of Health noted.

"To mitigate these challenges, hospitals will receive devices with power banks for backup power. Additionally, the digital system will function in offline mode, ensuring hospitals can operate without internet access."

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Health Information Management System

Regarding the scope of the Kes104.8 billion deal, the ministry stated that this amount encompases several planks of the Social Health Insurance project. Some of the aspects will be the development of Health Information Management System, and a Health Information Exchange platform.

Additionally, the Kes104.8 billion will fund the provision of core business services such as telemedicine and track and trace for pharmaceutical products.

The ministry said the amount also covers the SHA Insurance Management Platform, an Enterprise Resource Planning (ERP) system, National Logistics and Supply Chain Management software.

What's more, it will provide a learning platform, a data lake, and analytics system, as well as the necessary digital health infrastructure to support these systems.

"The Ministry confirmed that the Specially Permitted Procurement (SPP) had indeed been approved as part of the broader framework for health sector projects. The Ministry cited Section 105 of the Health Act, (Cap. 241 of 2017) which mandates the creation and maintenance of a comprehensive and integrated health information system," noted Mr Pukose.

Also under scrutiny by the House was a potential conflict of interest regarding the involvement of the law firm Dentons Hamilton Harrison & Mathews to which the ministry stated the project's due diligence was carried out by Kaplan & Stratton Advocates.