This archive report was first published on 8 December 2019.
Kenya is on the verge of losing Sh20 billion in foreign direct investments following the cancellation of a Sh4.9 billion Health Care Information Technology project by the Ministry of Health.
The project, awarded to SevenSeas Technology Limited on October 2, 2017, aimed to connect 98 county, sub-county, and referral health facilities to a central data hub using ICT.
SevenSeas had already implemented phase one of the project, which included construction of the data and network operation centre, radiology hub, and training room, and reporting room.
However, a letter from Health Permanent Secretary Susan Mochache dated November 18, 2019, put an end to the project, citing that the requirement for a government support letter did not feature in the tender documents.
Ms Mochache's letter contradicts the government's earlier promise to issue the support letter, which was a condition for unlocking foreign investments worth Sh250 million from Africa Healthcare Master Fund PTE Limited, a Japanese firm, and Sh2.5 billion from another Japanese fund.
SevenSeas chief executive Michael Macharia has vowed to challenge the cancellation in court, which could result in the country losing billions in compensation if the government fails to reverse its decision within 14 days.
The Senate ad hoc committee on Managed Equipment Services has summoned Health Cabinet Secretary Sicily Kariuki to shed light on the circumstances surrounding the project's termination.
