MPs Protest Over Sh104.8B Healthcare IT System Procurement, Directs AG Not To Approve Deal

Members of Parliament have expressed concerns regarding the Ministry of Health’s procurement process for the Integrated Healthcare Information Technology System (IHTS), a key component of the Universal Health Program.

The contract, valued at Ksh 104.8 billion (including taxes), is set to be implemented over 12 years, with Safaricom PLC as the lead partner in the consortium responsible for the project.

The procurement was conducted under the Specially Permitted Procurement Procedure (SPPP) and involves the development of a comprehensive digital healthcare platform.

However, MPs, particularly members of the Departmental Committee on Health, are questioning the role of Safaricom PLC in leading the consortium despite its limited stake in the project—approximately 13%—while Apiero Limited holds more than 50%. The consortium also includes Konvergenz Network Solutions.

Endebess MP Dr. Robert Pukose, who chairs the departmental committee on Health raised doubts over Safaricom PLC’s involvement, suggesting that the telecom giant may be lending its name to boost the credibility of its consortium partners, such as Apiero Limited, which lacks experience in managing large-scale healthcare IT systems.

“Although Safaricom PLC’s role appears minimal, it seems to serve as the public face of the project, potentially masking the inexperience of its partners,” Dr. Pukose remarked.

He further called on the Ministry of Health, led by the Cabinet Secretary and Principal Secretary, to appear before the committee on Monday, September 30, 2024, at 10:00 AM to explain the rationale for opting for single-sourcing under the SPPP.

Dr. Pukose also questioned why the ministry bypassed the existing National Hospital Insurance Fund (NHIF) IT system, which has been functional, in favor of this new system.

Dr. Pukose voiced frustration over the Ministry’s decision to sideline the NHIF IT system, which he argued has been effectively serving the public.

He noted that trials of the new system in Marsabit and Tharaka Nithi counties have yielded poor results.

“They’ve tested the new system in Marsabit and Tharaka Nithi counties, and it failed. It’s unclear why the Ministry is so insistent on replacing a system that has been working. Instead, they should be focusing on enhancing the current NHIF IT system to include all registered members,” he said.

Dr. Pukose urged the Ministry to reconsider its approach, suggesting a gradual implementation of any new systems rather than an abrupt overhaul of the existing framework.

Meanwhile, the committee has requested the Attorney General not to approve the contract, citing concerns over potential corruption, single-sourcing, and the lack of tender documents and public participation in the process.

On Tuesday, the committee resolved to summon Cabinet Secretaries John Mbadi (Treasury) and Dr. Debra Mulongo Barasa (Health), along with the Attorney General, to clarify discrepancies in the technical evaluation process.

“We expect them to appear before the committee on Monday, September 30, 2024, to address our concerns regarding the procurement of the Integrated Healthcare Information Technology System,” Dr. Pukose stated.

He also noted the absence of a formal response from the Attorney General regarding the legal clearance of the contract.

“The process appears flawed. From what we’ve seen, this looks like fraud in the making. That’s why we need full transparency before we make any decisions,” he concluded.