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Kenya Government Faces Deadline to Pay Ksh90 Billion Debt

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 5 November 2021.

Kenya Government Faces Deadline to Pay Ksh90 Billion Debt

On November 4, 2021, the National Assembly Committee on Health ordered the Ministry of Health, the National Treasury, and the Office of the Attorney General to provide a detailed report within seven days on how to effect the payment of Ksh90 billion owed to Equip Agencies Limited.

The private company supplied the state with antimalarial medicine and equipment between 1995 and 1997, amounting to Ksh90 billion. In the last 25 years, the state has not shown any willingness to pay the company the money.

Health CS Mutahi Kagwe and Parliamentary Committee Chair Hon Sabina Chege During the Launch of PSA Oxygen Plant in Eldoret, Uasin Gishu County, on August 29, 2021.

Health CS Mutahi Kagwe and Parliamentary Committee Chair Hon Sabina Chege During the Launch of PSA Oxygen Plant in Eldoret, Uasin Gishu County, on August 29, 2021.

Chairperson of the committee, Hon Sabina Chege, directed that a meeting between Equip Agencies, the Health PS, the Attorney General, and the Treasury be held within seven days to negotiate and agree on a fee and communicate the same to the committee.

Other legislators present in the meeting included Alfred Keter of Nandi Hills, James Murgor of Keiyo North, Muriuki Njagagua of Mbeere North, Captain Ruweida Mohammed who is the Lamu County Woman Rep and Martin Owino of Ndhiwa.

Legislators present in the meeting expressed their disappointment that the suppliers are begging the Ministry of Health to pay them their dues, yet they supplied the goods without fail.

The committee issued this directive after the office of the Attorney General proposed to pay the company only Ksh4 billion from the Ksh90 billion the state owes it. The company, however, rejected the offer, and instead demanded that it be paid Ksh14 billion.

The National Treasury offices at Harambee Avenue, Nairobi.

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