Safaricom is spearheading a major consortium to support Kenya’s Ministry of Health in rolling out a state-of-the-art healthcare information technology system. The consortium, which includes Apeiro Ltd and Konvergenz Network Solutions, is set to invest KES 104.8 billion ($812.4 million) over the next decade to implement and maintain the Integrated Healthcare Information Technology System (IHTS).
The project is structured so that the companies will recoup their investment through phased monthly payments starting in February 2025, following the completion of key implementation milestones. Safaricom CEO Peter Ndegwa emphasized that the Ministry of Health will not require upfront capital, alleviating any immediate financial burden on the government.
Healthcare Modernization and Integration
The IHTS initiative is centered around establishing a seamless health information exchange that will facilitate interoperability across various health systems in Kenya. A critical component of the project is the digitization of public health facilities, which will be equipped with a standards-based hospital management system, aimed at improving the efficiency and effectiveness of healthcare delivery nationwide.
Emphasis on Cybersecurity and Compliance
In addition to improving healthcare infrastructure, the system will integrate robust cybersecurity measures to safeguard sensitive patient data and ensure compliance with Kenya’s data protection laws. The Ministry of Health is expected to officially launch the National Health Information Exchange on October 1, 2024. Developers interested in participating are encouraged to register ahead of time.
Beyond technology, Safaricom and its partners will focus on training healthcare professionals to effectively manage and utilize the system. They will also oversee the nationwide deployment of the project’s technical components.
Safaricom’s Strategic Vision
For Safaricom, this healthcare initiative is part of its broader vision to evolve into a purpose-driven technology company. It also builds on Safaricom’s legacy of rolling out impactful digital solutions for Kenya’s socio-economic development.
Safaricom’s Expanding Role in Technology
While the contract primarily benefits Kenya’s healthcare sector, there are growing discussions around its implications for Safaricom itself. Apeiro Ltd, which is associated with the Adani Group, holds the largest share of the consortium at 59.55%, while Safaricom retains a 22.56% stake. Konvergenz holds the remaining 17.89%. There have been speculations about whether Safaricom was fully committed to joining the consortium, with some industry observers suggesting the company may have faced external pressures.
Despite these concerns, Safaricom continues to perform strongly in the market. For the fiscal year ending March 2024, the company reported earnings of KSh 139.9 billion ($1.07 billion), marking a 13.4% increase in revenue. This growth has been largely driven by the company’s focus on customer segmentation and public sector digitization efforts.
M-PESA, Safaricom’s mobile money platform, remains a cornerstone of its revenue stream, contributing 42.4% of total earnings. The company has also formed strategic partnerships with global payment giants Mastercard and Visa to expand its reach in payment and remittance services, further cementing its role as a key player in Kenya’s digital economy.
