This archive report was first published on 26 August 2019.
Kenya's Ministry of Health is facing a significant financial burden, with a Sh1.5 billion debt to the Kenya Medical Supplies Authority (Kemsa), as revealed by the 2017/2018 Auditor General's report published on August 26, 2019.
Out of the total amount, Sh1.09 billion has been outstanding for more than two years, highlighting the ministry's failure to settle its dues in a timely manner.
The debt is attributed to services rendered by Kemsa, including procurement, distribution, and warehousing of products from donors, such as family planning commodities, condoms, and nutrition products.
"The services cannot stop, as the counties pick the commodities, more are brought on board, and the cycle continues," said an officer from the budget committee, emphasizing the importance of Kemsa's services.
Interestingly, the counties themselves owe Kemsa Sh2.2 billion, dating back to 2013, raising questions about why Kemsa's CEO, Dr. Jonah Mwangi, is not putting pressure on the counties to pay their debts.
"If all 47 counties owe them Sh2.2 billion and one entity a huge amount of Sh1.5 billion, which one should be more pressurized? Why are counties being blamed?" the officer asked.
According to the report, Nairobi County has the highest debt at Sh84.2 million, followed by Kilifi, Kitui, and Narok, which owe Sh138 million, Sh104 million, and Sh104 million, respectively. Nakuru's debt has accumulated to Sh96 million for drugs and other medical supplies.
When questioned about the ministry's debt, Dr. Mwangi was reluctant to reveal the amount, saying, "What I know is that the ministry pays as services are rendered, they procure, store, and we distribute as more stock comes in." He, however, refused to discuss the matter further, stating that he was in talks with the Health ministry and that the money would be settled.
