The recent SHIF (Social Health Insurance Fund) tender worth KES 100 billion, awarded to Safaricom, has sparked major controversy.
Safaricom initially declined the contract but was reportedly pressured to accept it by their chairman, Adil Khawaja.
This decision was influenced by Khawaja’s connection to Jayesh Saini, a prominent businessman involved with Nairobi West Hospital, who introduced a key partner, Apiero, from Abu Dhabi.
The contract required Safaricom to collaborate with two additional companies, Apiero from the Middle East and Convergence Limited, a Kenyan firm linked to Aden Duale and his associates.
Despite Safaricom being the lead contractor, it is projected that they will receive less than 10% of the KES 100 billion tender.
The lion’s share of the funds is expected to go to Apiero and Convergence, raising concerns about their actual contribution to the project.
There are claims that these firms are not adding substantial value to the SHIF digitization initiative, yet they stand to benefit the most financially.
Safaricom’s involvement, largely influenced by its leadership, appears to be a formality rather than a core part of the project’s execution.
The primary beneficiaries, Apiero and Convergence, have drawn attention for their limited contribution to the core digitization efforts of the SHIF project.
This raises questions about the procurement process and the transparency of the deal.
The involvement of prominent figures like Duale and Jayesh Saini further complicates the narrative, hinting at potential political and business interests intertwined in the deal.
This situation has drawn public scrutiny, particularly given that the SHIF project is crucial for the healthcare system in Kenya.
The fund is intended to support the digitization of health services under the newly implemented Social Health Insurance Act, which aims to provide universal health coverage.
As such, concerns about financial mismanagement and the effectiveness of the contractors in delivering on their mandates could undermine public trust in the healthcare reforms.
The SHIF tender has become a focal point of controversy due to the division of funds, Safaricom’s reluctant involvement, and the major role played by Apiero and Convergence.
The broader implications for the healthcare sector remain to be seen as stakeholders continue to question the integrity of the project.
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