State Drops Sh104B Adani-Linked SHA Tech System Over Failures

Controversy continues to engulf President William Ruto’s ambitious healthcare program after the Social Health Authority (SHA) abandoned its Ksh 104 billion technology infrastructure plan and opted for a local firm, Savannah Informatics, at a fraction of the cost.

This decision follows the failure of an international consortium, including Apeiro Limited, linked to India’s Adani Group, to deliver a functional Enterprise Resource Planning (ERP) system.

SHA has partially reverted to an older system initially used by the defunct National Health Insurance Fund (NHIF) while Savannah Informatics steps in to manage claims and payments at an estimated cost of Ksh 20 billion, nearly five times cheaper than the initial project.

The Apeiro-led consortium, which included Safaricom Limited and Konvergenz Network Solutions, was contracted to deliver an Integrated Hospital Management Information System (IHMIS) and digitize Kenya’s health supply chain. However, Apeiro’s imported AI system failed to integrate with Kenya’s regulatory and infrastructural needs. This misstep forced SHA to seek alternatives, with Savannah Informatics taking over claims management while the NHIF system handles reconciliation tasks.

The government’s decision to engage an international firm with no track record in health systems has drawn sharp criticism. Reports indicate that despite the project’s failure, the contract with Apeiro remains active. This inconsistency persists even after President Ruto’s recent cancellation of all Adani-linked deals in Kenya.

SHA Chair Dr. Abdi Mohamed denied the involvement of Savannah Informatics and maintained that the Ksh 104 billion project is still “on course.” However, insiders revealed that the SHA board approved the temporary solutions in a meeting on November 27, 2024.

EACC Launches Investigations

The Ethics and Anti-Corruption Commission (EACC) has opened investigations into the SHA agreement, seeking clarity on the involvement of Adani-linked firms and allegations of overpricing.
EACC Chairman Dr David Oginde stated, “Though I do not have all the details about Adani’s involvement in the SHA deal, our team is working to uncover the truth. Once we conclude, we shall inform the public.”