Safaricom is leading a consortium of companies to support Kenya’s Ministry of Health with a new healthcare IT system.
The consortium includes Apeiro Ltd and Konvergenz Network Solutions, and will invest KES 104.8 billion ($812.4 million) over ten years. The goal is to implement and support the Integrated Healthcare Information Technology System (IHTS).
The companies will recover the investment through monthly payments starting in February 2025. This will follow the completion of key milestones. Safaricom CEO Peter Ndegwa noted the Ministry will not need upfront capital or operational costs.
The project’s focus is on establishing a health information exchange to make health systems work together smoothly. It also plans to digitise public health facilities using a standards-based hospital management system.
Cybersecurity and Digital Solutions
The system will include cybersecurity measures to protect patient data. This will ensure compliance with Kenyan laws. The Ministry of Health will launch the National Health Information Exchange on October 1, 2024. Developers are encouraged to register early.
In addition to technology, Safaricom and its partners will train public health workers. They will manage the project and roll out tech components across the country.
Safaricom sees this as a big step toward becoming a purpose-driven technology company. It highlights its history of rolling out digital platforms that benefit Kenyans.
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Safaricom’s Growing Influence in Technology
While the contract benefits the Ministry, questions arise about its impact on Safaricom. Apeiro, linked to Adani Group, holds 59.55% of the consortium, while Safaricom holds 22.56%. Konvergenz owns 17.89%. Some speculate that Safaricom was reluctant to join but faced pressure to accept.
Safaricom recently reported earnings of KSh 139.9 billion ($1.07 billion) for the fiscal year ending March 2024. Its revenue increased by 13.4%, driven by customer segmentation and public sector digitisation.
M-PESA, its mobile money service, remains a key revenue source, contributing 42.4% of total earnings. Safaricom has also partnered with Mastercard and Visa to expand its payment and remittance services.