- Kenya's Safaricom, a telecommunications company, has led a consortium of companies, including Apeiro Ltd and Konvergenz Network Solutions Ltd, to support the Ministry of Health’s ambition through the implementation of an Integrated Healthcare Information Technology System (IHTS).
- The three companies will invest KES 104,808,136,478 ($812.4 million) over a ten-year period to implement, maintain, and support the IHTS.
- However, the consortium will recover the investment over the ten years, with monthly instalments set to begin in February 2025, upon the successful completion of key milestones in the project.
Additionally, the announcement signed by Safaricom CEO Peter Ndegwa highlighted that the project structure allows the Ministry to deploy a digital health solution without incurring any upfront capital or operational expenditure.
The core of the project’s delivery includes establishing a health information exchange to enhance the interoperability of health systems in the country. It also aims to develop a Standards-Based Integrated Hospital Management Information System to digitise public health facilities.
It also considers cybersecurity measures to protect patient data and ensure compliance with Kenyan legislation.
The Ministry has mentioned it is set to roll out the National Health Information Exchange on October 1, 2024 and developers are encouraged to register ahead of the launch.
Beyond the technological deliverables, Safaricom and its consortium partners will support training public health professionals, project management, and the rollout of technology components nationwide.
For Safaricom, the project represents a significant step towards advancing its ambition to be a purpose-led technology company, mentioning that the project builds on its track record of rolling out digital platforms that have positively impacted Kenyans.
Moreover, questions may arise about what is in it for Safaricom and whether the contract truly benefits the telco, given that Apeiro linked to Adani Group reportedly holds 59.55% of the consortium, Safaricom 22.56%, and Konvergenz Network Solutions 17.89%. However, an X user commented that Safaricom refused the contract but was forced to accept.
In May, Safaricom reported that its earnings exceeded market expectations and the group's guidance range, recording KSh 139.9 billion ($1.07 billion) in earnings before interest and tax for the fiscal year ending 31 March 2024.
At the time, the company identified customer segmentation, public sector digitisation, and investments in new technologies as key performance drivers. It noted that revenue rose by 13.4% to KSh 335.3 billion ($2.5 billion), with M-PESA, its mobile money service, accounting for 42.4% at KSh 140 billion.
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Recently, it partnered with Mastercard to expand payment acceptance and cross-border remittance services for merchants in Kenya and received a Payment Facilitator Certificate from Visa, a payment giant, a move expected to strengthen its merchant ecosystem.
