This archive report was first published on 21 August 2020.
USAID, Global Fund Threaten To Withdraw Sh400B Donor Funding Over KEMSA Scandal ¶
Published on August 21, 2020
Kenya is facing a potential loss of up to Sh400 billion in donor funding following allegations of corruption at the Kenya Medical Supplies Authority (KEMSA).
The United States Agency for International Development (USAID) and the Global Fund have expressed concern over the alleged misappropriation of COVID-19 funds and are threatening to withdraw their support for HIV/AIDS, tuberculosis, and malaria programs in Kenya.
The Global Fund and USAID have written to the government, expressing their concerns over KEMSA's procurement woes, management, and implementation of grants. They have also raised concerns over the agency's stockpile of personal protective equipment (PPEs) and other COVID-19 supplies, which are worth up to Sh6 billion.
The supplies were purchased at inflated prices, triple the market value, and are now set to expire. KEMSA is seeking the health ministry's approval to dispose of the supplies at a market value of Sh4 million.
The agency is also seeking Sh5 billion in re-capitalization from the treasury to cushion itself from the losses incurred.
The scandal dates back to March 2020, when the Health Ministry PS Susan Mochache directed KEMSA to procure 25,000 PPEs, 10,000 N95 masks, and 6,000 lab sample transport collection consumable kits.
However, KEMSA officials went on a shopping spree, purchasing the supplies at inflated prices. The agency's MD, Jonah Manjari, was subsequently suspended, and the Treasury slammed the door on any additional budgetary allocation to KEMSA.
The KEMSA Board is now considering sending more officials packing as the web of graft at the agency continues to unravel.
