A consortium led by Safaricom has clinched a lucrative Sh104.8 billion contract to provide the technology infrastructure that will facilitate the transition from the National Hospital Insurance Fund (NHIF) to the new Social Health Insurance Fund (SHIF).

The deal requires the consortium to invest in technology and support the implementation process, with plans to recoup their investment over a ten-year period through monthly instalments starting in February 2025.

Safaricom CEO Peter Ndegwa said that the agreement involves developing an Integrated Healthcare Information Technology System (HITS) to enhance healthcare accessibility across the nation.

“The consortium, which includes Apiero Limited and Konverge Network Solutions Limited, will invest Sh104.8 billion over a ten-year period to implement, maintain, and support the HITS System. This project structure allows the Ministry to deploy a comprehensive digital health solution without incurring any upfront capital expenditure (CapEx) or operational expenditure (OpEx),” Ndegwa stated.

No initial costs in deal

The financial arrangement is designed to enable the Ministry of Health to establish a wide-ranging digital health solution without any initial costs.

Key features of the HITS initiative include a health information exchange system to facilitate interoperability among healthcare systems and unify patient records across various facilities. Additionally, the project will develop a hospital management information system in collaboration with the Ministry of Health and county governments to digitize public health facilities.

Digitization of social health

The project also aims to improve supply chain technology for enhanced pharmaceutical visibility, reducing stock-outs, and ensuring medicine traceability.

Ndegwa emphasized that the system would support the digitalization of the Social Health Authority (SHA), enhancing efficiency and accountability in healthcare financing.

Apiero Limited will focus on improving healthcare access in rural areas and bridging service delivery gaps under SHIF, while Konverge Network Solutions Limited will leverage its ICT expertise to implement HIMS and HIE, ensuring seamless integration of NHIF data into SHIF with data integrity. Safaricom is expected to contribute technological and logistical support, leveraging its vast network to boost public awareness and facilitate the registration process. Their experience in managing large-scale digital projects ensures the necessary infrastructure and training for a successful rollout.

The SHIF program is set to launch on October 1, 2024. Although registration began on July 1, 2024, full implementation was postponed to address logistical challenges and ensure all necessary systems are in place.

With over 1.2 million people registered by mid-September 2024, the SHIF program aims to provide comprehensive health coverage for all Kenyans. This initiative aligns with the Kenya Kwanza administration’s commitment to Universal Health Coverage and improving healthcare access nationwide.