Don't approve Sh104.8bn health deal, House team advises AG Dorcas Oduor
Robert Pukose (second right), Chairman of the National Assembly Committee on Health, accompanied by members of the team, Ndhiwa MP Joshua Owino (left), Kilgoris MP Julius Sunkuli (second left) and Kisumu Central MP Joshua Oron.
A parliamentary committee has told Attorney-General Dorcas Oduor not to approve a Sh104.8 billion contract for the health digital system awarded a Safaricom-led consortium.
The Departmental Committee on Health, chaired by Endebess MP Robert Pukose, criticised the contract between the Ministry of Health and the consortium after the Integrated Healthcare Information Technology System failed during tests early this week.
“They have tested the system in Marsabit and Tharaka-Nithi counties and it failed. It’s unclear why the Ministry is insistent on replacing a working system,” Dr Pukose said.
“Why can’t they focus on enhancing the National Health Insurance Fund IT to include every registered member?”
Citing concerns over potential corruption, single-sourcing, lack of tender documents and public participation, the committee resolved to summon Cabinet Secretaries John Mbadi (Treasury) and Debra Barasa (Health) along with Ms Oduor to clarify discrepancies in technical evaluation.
The MPs also summoned Medical Services PS Harry Kimtai, who signed the deal.
“We expect them to appear before the committee at 10am on September 30,” Dr Pukose said.
He noted the absence of a formal response from the AG regarding the legal clearance of the contract.
“The process appears flawed. This looks like fraud in the making. We need full transparency before making any decisions,” the Endebess MP said.
While urging the Ministry of Health to reconsider its approach, suggesting a gradual implementation of any new systems, Dr Pukose voiced frustration over the decision to sideline the NHIF system, which he insisted has been effective in serving Kenyans.
According to the ministry, the Sh104.8 billion contract will be implemented over 12 years, with Safaricom PLC as the lead partner in the consortium responsible for the project.
The Specially Permitted Procurement Procedure contract involves the development of a comprehensive digital healthcare platform.
However, the National Assembly Departmental Committee on Health is questioning the role of Safaricom PLC in leading the consortium despite its limited stake in the project – approximately 13 per cent – while Apiero Ltd has more than 50 per cent.
The consortium also includes Konvergenz Network Solutions.
“Though Safaricom’s role appears minimal, it seems to serve as the public face of the project, potentially masking the inexperience of its partners,” Dr Pukose said.
“The PS must explain the rationale for opting for single-sourcing.”
Kitutu Chache South MP Anthony Kibagendi, a member of the committee, stressed the need to determine if the AG cleared the execution of the contract.
Mr Kibagendi said a review of documents revealed the AG was not involved, underscoring the severity of the matter and potential corruption.
“The Health Cabinet Secretary did not inform her Treasury colleague about this project as required by law,” he said.
He added that many of the firms associated with the project were registered recently.
“While Safaricom is the lead bidder, the majority of the work is being carried out by Apiero Ltd, a partner in the tripartite consortium,” he said.
Seme MP James Nyikal was sceptical about the need for a new IT system, given that the NHIF one is still operational.
“We need to understand why this new system is necessary and who will fund it,” Dr Nyikal said.
Kisumu Central MP Joshua Oron expressed fears over the lack of scrutiny in the ERP component of the agreement.
