Safaricom is leading a group of companies, including Apeiro Ltd and Konvergenz Network Solutions Ltd, to assist the Ministry of Health with its goal of implementing an Integrated Healthcare Information Technology System (IHTS).
Together, these companies plan to invest approximately $812.4 million over the next decade to develop, maintain, and support this digital healthcare system.
The consortium is expected to recoup its investment over the same ten years, with payments starting in February 2025, after meeting certain project milestones. Safaricom CEO Peter Ndegwa, in an official statement, emphasized that the project allows the Ministry of Health to adopt a digital health solution without incurring initial capital or operational expenses.
“This project structure allows the Ministry of Health (MoH) to deploy a comprehensive digital health solution without incurring any upfront capital expenditure (CapEx) or operational expenditure (OpEx),” he said
A key part of the project involves establishing a health information exchange to ensure the interoperability of health systems in Kenya.
The initiative also aims to create a standards-based Integrated Hospital Management Information System to digitize public health services. Moreover, it will implement cybersecurity measures to safeguard patient data and adhere to local laws.
The Ministry of Health has announced the launch of the National Health Information Exchange on October 1, 2024, and developers are encouraged to register before the rollout.
In addition to the technological infrastructure, Safaricom and its partners will support the training of healthcare professionals, project management, and the nationwide implementation of technology components. For Safaricom, this venture is a significant step toward becoming a purpose-driven technology firm, building on its experience with digital platforms that have benefited many Kenyans.
Despite the promise of the project, some have questioned whether Safaricom truly stands to gain from the deal, given that Apeiro, linked to the Adani Group, holds the majority stake of 59.55% in the consortium, while Safaricom holds 22.56% and Konvergenz Network Solutions has 17.89%. An X (formerly Twitter) user even suggested that Safaricom initially declined the contract but was compelled to participate.
Earlier this year, in May, Safaricom reported earnings that surpassed market expectations, with earnings before interest and tax reaching KSh 139.9 billion ($1.07 billion) for the fiscal year ending March 2024.
The company attributed its growth to customer segmentation, public sector digitization, and investments in emerging technologies. Revenue also increased by 13.4% to KSh 335.3 billion ($2.5 billion), with M-PESA, its mobile money service, contributing 42.4% of that total, at KSh 140 billion.
Recently, Safaricom partnered with Mastercard to enhance payment services and cross-border remittances for Kenyan merchants and received a Payment Facilitator Certificate from Visa, strengthening its merchant network.