The National Assembly during a past session.
MPs have questioned why a new health information system is costing the government Sh104 billion when the one it is replacing from the defunct National Hospital Insurance Fund (NHIF) required Sh700 million to upgrade.
The lawmakers say the procurement of the Sh104 billion Integrated Healthcare Information Technology System (IHITS) was rushed and lacked adequate public participation.
The installation of the ICT system is a critical pillar of Universal Health Care (UHC) as it will ensure equitable access to health services for all Kenyans.
The system will link all public health facilities from Level 1 facilities to referral hospitals in the realisation of President William Ruto's Bottom-Up Economic Transformation Agenda (Beta), but its cost is what MPs are opposing.
However, members of the National Assembly's Health Committee have raised a red flag over the way the system is being procured.
At a meeting of the committee, chaired by Endebess MP Robert Pukose, MPs criticised the Ministry of Health for opting for a single-source procurement of the ICT system instead of open tendering.
The committee is concerned that while the National Hospital Insurance Fund (NHIF), renamed the Social Health Authority (SHA), needed Sh700 million to upgrade its ICT infrastructure, the government is seeking Sh104 billion for the new system.
"NHIF, which has since been transformed into SHA, only needed Sh700 million to upgrade its platform. But here we are talking about an exorbitant amount of Sh104 billion for a system that was single-sourced. We cannot allow this to continue," said Bumula MP Jack Wamboka.
The amount can have a significant impact on children's education and well-being, as it is enough to fund primary school children's midday meals for 10 years.
The IHITS system involves the use of ICT to implement a hospital information system and support ICT infrastructure to benefit public hospitals across the country, accelerating the achievement of the Kenya Kwanza's e-Health Strategy -- a national health IT blueprint.
In 2017, the government had awarded a Sh4.9 billion contract to a local company -- Seven Seas Technologies Limited -- to implement a similar system, but the contract was cancelled late by the Ministry of Health following a dispute in the contract document.
The Health Care Information Technology (HCIT) system was to be implemented under the Managed Equipment Service (MES) project.
Mr Wamboka also raised concerns about foreign involvement in critical national infrastructure.
"We are saying step back and listen to what Kenyans are saying. We cannot entrust key infrastructure like our airports and now the health system to a foreign company. It will lead to collapse," he warned.
In addition to the Jomo Kenyatta International Airport (JKIA), the Kenya Electricity Transmission Company (Ketraco) is among the state enterprises that the government is in the process of privatising.
While the Bumula MP was speaking, Seme MP James Nyikal, a member of the Health committee, said the ministry would be better off engaging other institutions or partners that could provide the ICT system at a lower cost.
"It was unclear to us how the company that was awarded the contract became the sole recipient of the tender. Why were no other companies considered?" Dr Nyikal asked.
The Seme MP also highlighted gaps in the due diligence process of the consortium partners.
Funyula MP Wilberforce Oundo claimed that the single sourcing of the IHITS provider was riddled with irregularities bordering on theft of public funds.
"How can anyone justify this massive rip-off to run a system? To be honest, we implore you to think of the people of Kenya. We cannot afford to steal from Kenyans on this scale," said Dr Oundo.
The IHITS system is designed to manage social health insurance through the creation of a comprehensive and integrated healthcare system.
Its key features include the development of a health information management system, the provision of core services such as telemedicine and a track and trace system for pharmaceutical products, among others.
Kitutu Chache South MP Anthony Kibagendi noted that some of the most sophisticated systems in our country, such as those of the Kenya Revenue Authority (KRA), Safaricom and M-Pesa, cost less than Sh10 billion.
"I wonder why we are considering spending these colossal sums of money on a system when those who designed the NHIF system were willing to upgrade it for less than Sh1 billion," Mr Kibagendi said.
The ministry has not provided clarity on how much of the Sh34 billion initial investment has actually arrived in the country and in which account it is being held.
