MPs put Kemsa to task on Corona cash theft claims

Kenya Medical Supplies Authority (Kemsa) is holding stock worth Sh6.2 billion of Personal Protective Equipment (PPEs) but cannot dispose them off, at the current selling price.

Board chairman Kembi Gitura, told a parliamentary committee that if the agency sells the equipment at the current market price, it would fetch Sh4.3 billion, thus losing over Sh2 billion in the process.

He said that with the advent of Covid-19, after the first case was reported in Kenya in March this year, the Ministry of Health requested the agency to prepare adequately to tackle any eventuality.

The agency, he said, procured equipment worth Sh7.6 billion to prepare to the pandemic.

National Assembly Health Committee had asked Kemsa to provide a detailed status report of all the funds received towards the fight against Covid-19 since March.

Kembi put up a spirited defence for the agency, saying that no money had been lost in the procurement of the PPEs.

He termed the  said scandal at the agency as an imagination of a section of the media.

Supplier’s payments

He told the committee chaired by Murang’a Woman Rep Sabina Chege, that since March 2020, Kemsa received Sh2,181,934,518 from the Ministry of Health. Of this amount, Sh1.5 billion was earmarked for the procurement of reagents and test Kits. 

Sh300 million has been received in full for procurement of locally produced re-usable face masks.

He said the procurement of the reagents and masks was done in collaboration with the Kenya National Chamber of Commerce and Industry (KNCCI).

Mbeere North MP Charles Njagagua asked Kembi to explain the role of KNCCI in the supply of the PPEs.

The agency has also received Sh777. 7 million for procurement of testing and extraction kits.

The Ministry of Health remits the funds to Kemsa upon submission of evidence for full delivery of equipment by the suppliers to the Ministry of Health, for the agency to make payments.

On how the funds received by Kemsa have been spent towards mitigating the effects of Covid-19, Gitura said Sh1.5 billion has been spent on procurement of Home Pregnancy Testing slabs .

He said: “A total of Sh450 million has been committed so far and no payment has been made against the amount.

Another Sh300million for the procurement of re-usable facemasks is ongoing. Again, no payment has been made against this amount.”

“We have already spent Sh 77. 7 million and Sh70.7 million to pay for testing and extraction kits  which have been fully delivered to our warehouse.

Sh7,070,400 was for payment of Kemsa 10 per cent management fees. This amount is partial receipt against the ministry’s,” said the board’s chairman.

The agency, he said has spent Sh304 million to settle supplier’s payments who have fully delivered commodities as contracted. 

He added that a request of Sh148.6 million has been forwarded to the Ministry of Health for settlement of further suppliers’ payments.

The agency has in support of the fight against the pandemic, received donations from among others, Jack Ma, Ministry of Foreign Affairs, Embassy of China, World Health Organisation, Chinese Embassy, Chai Roche.  Others are Islamic Relief, High Commission of India, Loreal, UNDP, UNEP, Atrazeneca.

Kemsa has also received donations from Unicef, Republic of Slovakia, World Bank,  China Meheco Corporation, Korea Embassy  and  Stanbic Consortium.

Asked why the board suspended Chief Executive Officer and two other directors, Gitura said the Ethics and Anti-corruption Commission wrote to the Board, advising that the trio be  suspended effect to pave way for investigations.