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CS Kagwe Meets US Ambassador Amid Ksh400B Aid Withdrawal Threat

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 25 August 2020.

On August 25, 2020, Health CS Mutahi Kagwe held a crucial meeting with United States Ambassador Kyle McCarter, just days after USAID and Global Fund threatened to withdraw Ksh400 billion in aid.

The donors had issued a warning to the Ministry of Health, stating that they would withdraw aid meant to support HIV, Tuberculosis, and Malaria programs for the next three years. This decision was made in response to allegations of mega-corruption in the use of Covid-19 funds and donations.

During the meeting, Kagwe described the United States as one of Kenya's most valuable partners to the health sector. The Ministry of Health also confirmed that ongoing trade deal negotiations between the US and Kenya were a key topic of discussion.

"The two spoke about the trade negotiations between the two countries, particularly on inviting American businesses to set up in Kenya," the Ministry stated.

The threat to withdraw aid came after details emerged of suspect procurement schemes at the Kenya Medical Supplies Agency (KEMSA) that could have cost taxpayers billions. KEMSA CEO Jonah Mwangi Manjari was among officials suspended in the wake of the scandal.

The Ethics and Anti-Corruption Commission (EACC) promised to conclude investigations into private companies at the center of the scam before bringing alleged perpetrators to justice.

"This is a big and wide case that will take time to process. The case has very many angles We want to establish whether these companies have a history and profile or whether they are briefcase entities," EACC CEO Twalib Mbarak stated on August 24.

Orange Democratic Movement (ODM) Secretary General Edwin Sifuna had previously cautioned against sensational reporting on the scam, warning that it could compromise international support for Kenya.

"We will keep raising any concerns we have about government operations, specifically Covid-19-related issues, through the proper channels, without unnecessary drama and hubris," Sifuna stated.

The Health Committee in the Senate has also been investigating the matter, with top officials from the Ministry of Health grilled as part of the probe.

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