Senate begins probe into controversial Sh104bn IT tender for SHA

The Senate has started an investigation into the Sh104 billion IT system that is designed to support the newly established Social Health Authority (SHA).

This move comes in the wake of a chaotic launch, during which many private healthcare facilities were unable to process payments electronically, forcing patients to pay in cash due to technical issues.

Under the current agreement, Kenyans will contribute Sh10 billion annually over the next decade to a consortium that has been contracted to provide this system.

The Senate Health Committee has been assigned the task of examining why this consortium, which includes Safaricom Limited, Apeiro Limited, and Konvergenz Network Solutions Limited, was chosen without a competitive bidding process, and whether the financial investment represents good value for money.

The committee, chaired by Uasin Gishu Senator Jackson Mandago, is expected to report its findings back to the Senate within 60 days.

This inquiry follows concerns raised by Kisii Senator Richard Onyonka, who requested clarity on the ownership of the three companies involved.

In light of the system's crucial role in linking various components of Kenya's health infrastructure such as patients, healthcare workers, hospitals, medical products, and financing the committee is also tasked with determining whether a national security assessment was conducted prior to the system's implementation.

Senator Onyonka emphasised the need for transparency regarding the involvement of foreign entities in the country's healthcare framework.

Additionally, the committee will investigate the delineation of roles between the Ministry of Health and the SHA in overseeing the procurement of the IT system.

They will review the payment terms agreed upon between the consortium and the Ministry, checking if these payments are tied to specific performance milestones.

"The committee should find out whether there are detailed specific improvements in our healthcare delivery and patient outcomes expected by the Ministry of Health following the implementation of the system," Onyonka stated.

The Senate plans to summon officials from Afya House and SHA management to address these pressing questions as part of the investigation.

Health Cabinet Secretary Deborah Barasa faced challenges explaining the system's operations during her recent appearance before the National Assembly on September 30, 2024.

Since its launch on October 1, the SHA has encountered operational difficulties, with many patients suffering from chronic illnesses having to pay out of pocket for their services.

The National Assembly has also raised concerns about the single-sourcing of the IT system, the absence of tender documents, and the lack of public participation in the process.

"The process appears flawed. From what we've seen, this looks like a fraud in the making," Robert Pukose, Health Committee Chairman said.