Afya house dodges own meeting as heat over Sh104bn tender increases

Afya House officials on Friday abandoned a crucial meeting they organised to explain to Kenyans how the new Social Health Authority will be piloted on Tuesday.

Health PS Harry Kimtai was to host the meeting at JW Marriot, a high-end hotel in Nairobi’s Chiromo area, from 7.30am.

He was also expected to give more details about the controversial Sh104 billion IT system that will support health services.

Breakfast was served at 7.30am but the host PS, ministry and SHA officials, and representatives of the consortium behind the IT system, did not show up. The media and other guests slowly left at 11am.

According to an invitation from the Social Health Authority, the PS would be joined by a representative from SHA and the consortium that was handpicked to provide the Sh104 billion integrated healthcare information technology system.

The consortium comprises Safaricom Limited, Apeiro Limited and Konvergenz Network Solutions Limited.

“The Ministry of Health invites you to attend an update session ahead of the new health system roll out that will commence on October 1, 2024. During the meeting, a team of experts will take the members of the fourth estate through what Kenyans should expect from beginning of October and how the new system will work,” the invitation sent on Thursday indicated.

It also showed each member of the consortium would send a representative.

However, the PS was said to be held up in “meetings” and officials who were on the way to the session were also recalled for a “meeting”.

The government has faced scrutiny over the IT system, which Kenyans will pay for over 10 years. The supplier was handpicked and there was no competitive bidding.

The 60-year old National Hospital Insurance Fund will be folded on Monday, and the SHA will take over from Tuesday.

On Wednesday night, PS Kimtai told participants of a public forum at the University of Nairobi that handpicking the supplier was the right thing to do.

“We've done comparison with others, because we've asked some reputable companies to do assessment for us in terms of this system. The verdict they gave us is that if we are able to implement this system, there is going to be value for money,” he said.

“There is no need to buy a system that makes or has challenges and supports a lot of fraud. We have made it watertight, and that's why the investment will bring money or value for money for Kenyans.”

He also defended direct procurement.

According to the Public Procurement and Disposal Act, direct procurement is preferred when only the said supplier has the said goods or services, or due to war, invasion, disorder and other unique circumstances.

PS Kimtai said the Procurement and Disposal Act, Section 114A gives the CS for National Treasury power to grant approval based on the complexity of the procurement.

“Sometimes when you are procuring a service that has some challenges that cannot easily be found in the market, then you apply. Once permission has been granted for direct procurement, then you go through that method,” he said.

Kimtai also said they wanted a partner who could support such an expensive system and recoup their investment slowly.

“Therefore, we had to be very careful in choosing the correct partners. We wanted a proposal of somebody or a partner who is able to give the money up front, to invest the money up front. Then as we continue registering and as we continue providing service under the digital health ecosystem, we'll be able to be paying in instalments,” he said.

On Thursday, the National Assembly's Health Committee also summoned Health CS Debra Mlongo, to explain the rationale the ministry used to single-source the Sh104 billion system.

Mlongo will appear before the committee on Monday. 

Lawmakers raised concerns over potential corruption, single-sourcing, and lack of tender documents and public participation.

“The process appears flawed. From what we’ve seen, this looks like fraud in the making. That’s why we need full transparency before we make any decisions," Health Committee chairman Robert Pukose said at the meeting.

The MPs also want to know why the ministry abandoned the existing NHIF system in favour of the new one.

For the lawmakers, the NHIF system has been effectively serving members of the public to warrant a replacement.

The committee also heard that the new system is yet to show its worth after failing the test in Marsabit and Tharaka Nithi counties.

“They've tested the new system in Marsabit and Tharaka Nithi counties, and it failed,” Pukose said.

“It is unclear why the ministry is so insistent on replacing a system that has been working. Instead, they should be focusing on enhancing the current NHIF IT system to include all registered members,” the Endebess MP said.