Press statement by the Chairperson of the Departmental Committee On Health on the clarifications of the procurement of the Integrated Information Technology (IITS) for Universal Healthcare.
Following the need to operationalize the Social Health Insurance Act, No. 16 of 2023 that established the Social Health Authority (SHA) and roll-out of the contributions to the Social Health Authority, tomorrow1st October 2024,
As the Chairperson of the Departmental Committee on Health, I would to make the following statement:
THAT, the Members of the Departmental Committee on Health raised concerns regarding the procurement of the Integrated Information Technology System For Universal Healthcare particularly on the absence of a formal letter of consent from the Office of the Attorney General which is a legal requirement under section 134(2) of the Public Procurement and Asset Disposal Act. 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.
Secondly, the Members questioned the role of Safaricom PLC within the Consortium, particularly why it was designated as the lead partner of the Consortium. The Ministry of Health identified Safaricom PLC as a strategic partner and gave Safaricom PLC a request for proposal for the tender. However, Safaricom PLC submitted its bid as consortium with Apiero Limited and Konvergenz Network Solutions Limited with Safaricom as the lead bidder. Safaricom PLC’s role in the Consortium involves overseeing the entire project, ensuring that all Consortium partners adhere to the contract’s terms and deliver their respective components as per the agreed scope.
Safaricom PLC, especially with other competitors in the market, was identified owing to its strong capacity to manage and coordinate the project effectively. Safaricom PLC is the largest telecommunications company in Kenya and one of the most advanced in East Africa. The Ministry of Health highlighted Safaricom’s technological advantages, particularly its extensive 5G network, which currently reaches 77% of the Kenyan population. In addition, they maintained that Safaricom’s network covers over 99% of the country, providing connectivity in remote areas. These factors made Safaricom the most suitable partner for a large-scale project that requires robust and reliable digital infrastructure.
THAT, Members sought clarification regarding the Kshs. 104.8 billion contract, specifically questioning its scope. The Ministry clarified that the amount is not solely dedicated to Social Health Insurance but includes various components aimed at delivering a comprehensive and integrated healthcare system for Kenya. These components encompass the development of a Health Information Management System, a Health Information Exchange platform, core business services such as the provision of telemedicine and track and trace for pharmaceutical products, the SHA Insurance Management Platform, an Enterprise Resource Planning (ERP) system, National Logistics and Supply Chain Management software, a learning platform, a data lake and analytics system, as well as the necessary digital health infrastructure to support these systems.
AND ON inclusion of the Specially Permitted Procurement in the Ministry’s annual procurement plan for the financial year 2023/2024. Members of the Committee sought clarification on whether the SPP had been formally approved, particularly in relation to the Ministry’s ongoing initiatives in the health sector. The Ministry confirmed that the 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.
HEIGHTENED INTERESTS were raised Concerning a potential conflict of interest in the due diligence process, specifically regarding the involvement of the law firm Dentons Hamilton Harrison & Mathews. Members questioned whether their participation compromised the integrity of the process. AND In response, the Ministry clarified that the due diligence was conducted by Kaplan & Stratton Advocates, not Dentons Hamilton Harrison & Mathews as widely reported. This clarification aimed to reassure members that due diligence was carried out appropriately and impartially. The Ministry emphasized that there was no undue influence or conflict of interest affecting the legitimacy of the project.
Members expressed concerns about electricity and network connectivity challenges in certain hospitals, especially in remote areas. The Ministry of Health and the Social Health Authority acknowledged the issue, noting that 4,065 hospitals face difficulties with power and internet access. 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. The Ministry is also partnering with the Ministry of Energy to secure infrastructure upgrades, including reliable electricity, to facilitate the full implementation of the digital health system.
On the potential failure of the digital healthcare system and the measures the Ministry has implemented to prevent such failures. The Ministry assured the Committee that there are at least three connectivity lines available to support the system in case of such an occurrence.