On Friday, Afya House officials abruptly abandoned a crucial meeting intended to explain to Kenyans the upcoming pilot of the new Social Health Authority (SHA), scheduled to begin on Tuesday.
The meeting, organized by Health Principal Secretary Harry Kimtai, was set to take place at the JW Marriott hotel in Nairobi’s Chiromo area at 7:30 a.m. Kimtai was expected to provide further details about the controversial Sh104 billion IT system designed to support health services under the new SHA.
Although breakfast was served at the scheduled time, the PS, ministry and SHA officials, as well as representatives from the consortium behind the IT system, failed to appear. By 11 a.m., most of the media and invited guests had left.
An invitation from the Social Health Authority indicated that the PS would be joined by representatives from SHA and the consortium, which includes Safaricom Limited, Apeiro Limited, and Konvergenz Network Solutions Limited, who were handpicked to implement the Sh104 billion integrated healthcare IT system.
“The Ministry of Health invites you to attend an update session ahead of the new health system rollout on October 1, 2024. Experts will brief the media on what to expect and how the new system will operate,” read the invitation sent out on Thursday, also confirming the participation of the consortium’s representatives.
However, it was later reported that the PS was “caught up in meetings,” and other officials who were en route to the session were also recalled for another “meeting.”
The government has come under fire over the IT system, which Kenyans will finance over the next decade. Critics have questioned the lack of competitive bidding, as the supplier was directly selected. The 60-year-old National Hospital Insurance Fund (NHIF) will be disbanded on Monday, with the SHA officially taking over on Tuesday.
On Wednesday night, PS Kimtai defended the direct selection of the supplier during a public forum at the University of Nairobi. He argued that the handpicking process was justified based on assessments from reputable companies, which indicated the system would deliver value for money.
“We’ve compared it with other options, and the verdict is clear—this system will offer value for money. We didn’t want a system prone to fraud, so we made sure this investment is secure,” Kimtai said. He also stood by the decision to use direct procurement.
According to the Public Procurement and Disposal Act, direct procurement is allowed when only one supplier can provide the required goods or services, or in cases of war, disorder, or other exceptional circumstances. Kimtai cited Section 114A of the Act, which grants the Treasury CS authority to approve such procurements when necessary due to the complexity of the services involved.
“When procuring services with specific challenges that are not easily addressed in the market, direct procurement becomes appropriate. Once approved, we followed that route,” Kimtai explained.
He further elaborated that they were seeking a partner who could support the costly system and recover their investment gradually. “We needed a partner willing to invest upfront, while we repay in instalments as the digital health system is rolled out.”
On Thursday, the National Assembly’s Health Committee summoned Health Cabinet Secretary Debra Mlongo to explain the ministry’s decision to single-source the Sh104 billion system. She is set to appear before the committee on Monday.
Lawmakers expressed concerns about potential corruption, the lack of a competitive tender process, and inadequate public consultation. “From what we’ve seen, this process appears flawed and ripe for fraud. Full transparency is needed before any decisions are made,” said Health Committee Chairman Robert Pukose.
The MPs also questioned the rationale for abandoning the existing NHIF system, which they argued has been serving the public effectively. Pukose revealed that the new system had already failed tests in Marsabit and Tharaka Nithi counties, further fueling doubts.
“They’ve tested the system in Marsabit and Tharaka Nithi, and it didn’t work,” Pukose stated. “Instead of replacing a functioning system, the ministry should focus on upgrading the current NHIF IT infrastructure to serve all registered members.”