This archive report was first published on 3 July 2019.
On July 3, 2019, the Auditor-General put the Health ministry on the spot over the secretive procurement of Sh7 billion CT scanners via a Chinese loan.
The procurement of the 37 computer tomography (CT) Scanners by the Kenyan government, facilitated by a Chinese loan, has raised eyebrows.
According to the Auditor-General, Edward Ouko, no procurement documents were made available for audit to establish how Chinese firm, Neusoft Medical Systems, was hired to supply the scanners.
Mr Ouko stated, 'Information available indicates that Neusoft Medical Systems was proposed by the government of the Peoples Republic of China as a leading manufacturer of CT scans. Consequently, it was not possible to ascertain whether due diligence and fidelity to the Public Procurement and Assets Disposal Act, 2015 was observed.'
The deal involved the Kenyan government contributing Sh1.7 billion under the agreement of economic and technical cooperation signed between the China Development Bank and the Treasury, which translates to 20 percent of the total cost.
The Chinese government was to advance Sh7 billion, with Neusoft Medical Systems supplying, installing, and maintaining the CT scanners in hospitals identified by the ministry for five years.
The equipment was to be installed at Moi Teaching and Referral Hospital, Kenyatta National Hospital, and 34 facilities in 34 counties.
Questions have been raised over the cost of the scanners, with each being priced at Sh227 million against quotations of between Sh40-45 million captured in Parliamentary reports.
The ministry defended the unit cost, stating it included construction of new buildings, air conditioners, special thermal film printer, report printer, warranty, and spare parts for five years among other components.
