Kenya Digital Health Market Analysis

Kenya Digital Health Market Executive Summary

Kenya's digital health market is projected to grow from $xxBn in 2022 to $xxBn by 2030, registering a CAGR xx% during the forecast period of 2022-30. In 2019 the health expenditure for Kenya was $83.4 per person which is 4.6% of GDP from $73.5 (4.31% of GDP) per person in 2018 according to the World Health Organization Global Health Expenditure database. It was low compared to the other countries. The majority of healthcare spending in Kenya is funded by the government and out-of-pocket payments by patients, with limited contributions from private health insurance. Low levels of healthcare spending limit the availability and quality of healthcare services in the country.

Kenya is one of Africa's leaders in the adoption and development of digital health technologies. Significant investments in digital health have been made by both the government and the corporate sector. In Kenya, the usage of digital health technology such as telemedicine, mobile health applications, and electronic medical record systems is expanding, which is assisting in improving patient access to healthcare services, particularly in distant and underserved regions. Overall, Kenya's digital health environment is favorable and the nation has tremendous potential to continue to lead the way in Africa in the development and adoption of digital health solutions.

Market Dynamics

Market Growth Drivers

The government introduced The National Digitization Strategy for Community Health which is a framework for guiding a young but quickly increasing digital community health ecosystem. The strategy proposes the creation of a national electronic Community Health Information System (eCHIS) to address gaps in community healthcare delivery and data management. Apart from that, other factors such as increased access to smartphones and internet connectivity, government programs and legislation, raising awareness of the advantages of digital health, and the demand for cost-effective and effective healthcare are just a few examples. The proliferation of chronic illnesses, a scarcity of healthcare personnel, and the expansion of e-commerce and services for mobile banking are all contributing to the expansion of Kenya's digital health market.

Market Restraints

The use of Information and Communication Technology (ICT) for community health care delivery and data management remains restricted. The Kenya Health Information System (KHIS) procedure of reporting community health data from the field to the national level is paper-based, which compromises report accuracy and timeliness. Where digital information systems exist, they are fragmented, poorly coordinated, companion implementations with limited capability and integration with the KHIS. Other restraints such as limited digital literacy among the population, lack of standardization and regulation in the industry, inadequate infrastructure and high costs, and concerns over data privacy and security slow down the growth of the digital health market in Kenya.

Competitive Landscape

Key Players

• Philips: A worldwide health technology leader that provides digital health solutions for telemedicine, imaging, and patient monitoring
• GE Healthcare: A leading provider of medical imaging, health monitoring, and digital health solutions throughout the world
• Siemens Healthineers: Global medical technology firm that provides a variety of digital health solutions such as telemedicine, remote monitoring, and e-health services
• Cellulant (KEN): It is a fintech company that provides digital payment and commerce solutions. The company has expanded into the digital health market and offers a range of services, including electronic medical records, mobile health clinics, and mobile telemedicine
• Turaco (KEN): they offer individuals with online micro health insurance platform. It provides low-cost microinsurance
• Afya Rekod (KEN): AI and blockchain-based patient data management software provider. Patients may use the platform to save and retrieve medical data in real time, as well as submit it to physicians

Healthcare Policies and Regulatory Landscape

Kenya's Ministry of Health (MoH) created the Strategy for Community Health, a strategy for providing community health services to families throughout the country. The strategy proposes the creation of a national electronic Community Health Information System (eCHIS) to address gaps in community health care delivery and data management identified via the eCHIS Landscape Assessment and extensive stakeholder involvement.

The Costed National Community Health Digitization Strategy 2020-2025 was created through a collaborative and inclusive process including partners from multidisciplinary teams, particularly those involved in the digital community health information system area.

Reimbursement Scenario

In Kenya, the National Health Insurance Fund (NHIF) is in charge of reimbursement in the healthcare industry. NHIF is a government-created parastatal agency that provides health insurance to Kenyans. The government has highlighted information and communication technology as a critical facilitator for achieving Universal Health Coverage. Significant investments have been made in this area, including Electronic Medical Records systems, Laboratory Information Systems, the Kenya Health Information System, and the Kenya Health and Research Observatory and NHIF will soon expand its coverage to include digital health services.