TUKO.co.ke journalist Wycliffe Musalia has over six years of experience in financial, business, technology, and climate reporting, which offers deep insights into Kenyan and global economic trends.

President William Ruto's economic advisor David Ndii's move to defend the Social Health Authority's (SHA) digital system, worth KSh 104 billion, has sparked debate among Kenyans.

Ndii said the Integrated Healthcare Information Technology System procured from a Safaricom-led consortium will cost less than what the National Hospital Insurance Fund (NHIF) used to spend per year.

The economist claimed that the SHA system will only cost KSh 2.3 billion or KSh 230 million, per year compared to KSh 450 million the NHIF used to spend.

"SHA software is only one of the components. SHA SaaS will cost KSh 2.3 billion, ie KSh 230m per year. NHIF was spending KSh 450 million per year," said Ndii.

Ndii's sentiments came after the Auditor General report cited unfavourable clauses in the consortium agreement, which denied the government full control of the system.

Most Kenyans raised concerns over accountability and ownership of the digital health system.

Others questioned the cost of the system and why it was procured without public participation.

@Eddie_Mugoh asked:

"How can that silly system be more expensive than Deepseek AI?"

@MzeeKijij wondered:

"In the spirit of transparency....are you, or, is there a member of your family, who is directly benefiting from this UHC scheme?"

@BBeutah questioned:

"Where do you guys get these expensive SHA SaaS costing Kshs 230M per year which you single sourced?"

@Nyakundijack3 asked:

"The clarification we want to own openly is it owned privately??"

@Nyakundijack3 said:

"After we have raised the concerns about it, is when you want to fix what was not there at all."

Ndii clarified that the SHA system is fully outsourced at the government has not spent any cent in procuring it.

He said the system charges after its use, confirming Auditor General Nancy Gathungu's report.

"There is no payment made in advance. We are charged when we use," said Ndii.

@FairValueX asked:

"Is the Digital Health Authority a government agency? If yes, why is it not operating the system right away?"

@Belive_Kinuthia wondered:

"This is good....but again, how much does the taxpayers lose in the event a new administration comes in and cancels the whole thing."

@FrankoRover questioned:

"So, if the payment is done retrospectively and is based on usage, how was the figure arrived at in advance?"

Gathungu said the procurement of the digital system from a Safaricom-led consortium breached the law.

She noted that the agreement prohibits the government from developing a similar system in case of technological changes.

The audit report also found that all the revenue proceeds from SHA system will be transferred to an escrow account owned by the system owners.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.

Source: TUKO.co.ke