This archive report was first published on 3 August 2020.
Kenya: Traders Who Made Millions From Covid Supplies ¶
As the Covid-19 pandemic spread across the globe, Kenya received billions of shillings in aid from international lenders and donors. The funds were meant to help the country combat the virus, but they also created a lucrative market for traders who supplied medical equipment and services.
According to an investigation by The Nation, at least 12 companies were awarded contracts worth Sh3 billion by the Kenya Medical Supplies Authority (Kemsa) to deliver items that were not covered by the state agency's 2019/20 approved budget as of June 4, 2020.
One of the companies, Kilig Limited, was registered just weeks before Africa reported its first coronavirus case. The company was handpicked and handed a Sh4 billion offer to supply hundreds of thousands of Personal Protective Equipment (PPEs) at an inflated cost of Sh9,000 per kit.
Another company, Shop 'N' Buy Limited, was registered on February 14, 2020, and was handed a Sh970 million contract to supply 100,000 PPE kits at an approximate price of Sh9,000 per kit. The company was also allowed to supply another 100,000 pieces of KN95 masks at Sh700 a piece.
However, an investigation by The Nation found that the prices of some of the items supplied by these companies had dropped significantly since the pandemic. For example, Shop 'N' Buy Limited is today selling KN95 masks at Sh200 a piece, which is less than a third of what it sold to Kemsa.
The investigation also found that some of the companies that were awarded contracts by Kemsa had no capacity to deliver the items they were contracted to supply. For example, Kilig Limited had no proof or record of ability to supply such a big tender on such a short notice.
Despite the irregularities, the companies that were awarded contracts by Kemsa have made millions from the pandemic. For instance, Shop 'N' Buy Limited earned revenues of Sh900 million from the sale of PPE kits.
However, the investigation by The Nation also found that the companies that were already in the public procurement system were likely to benefit the most from the pandemic. For example, events organizing company Wanderjoy Party World Limited has been providing catering services to Statehouse and has now extended its clientele base to the Interior ministry.
It is worth noting that the investigation by The Nation was conducted in August 2020, and the information provided is based on the facts as they were known at that time.
