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Rot in Kemsa risks Kenya losing sh.400 billion in aid funds as donors threatens to withdraw support

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KEMSA risks losing billions of shillings in devalued stocks. Major donors threaten to pull out of over Ksh400 B in funding.

USAID, Global Fund write to the ministry over KEMSA scandal. Global Fund, USAID fund HIV/Aids, Malaria and Tuberculosis.

This comes as the investigations involving misappropriation of Covid-19 aid funds gathers pace as the Kemsa top officials were suspended.

In a rallying quest to boost the Kenya’s bid in tackling the pandemic, IMF, world Bank, African Development Bank among other agencies have injected amounts totaling over sh.200 billion but the funds haven’t met its desired objectives as the entrepreneurs, conspiracy, sleaze and officials maneuvering in KEMSA has seen billions disappear in procurement malpractices and flouting of guidelines.

The threat by USAID and other major donors that have huge stake in health sector for decades is consequential as its efforts have borne enormous fruits among Kenyans in urban low-income places and rural areas.

Take Ampath for example, an institution fully funded by Usaid for research and treatment of diseases: malaria and HIV in western region of Kenya. Thousands of staff in its ranks and huge impact in communities in battling the prevalent diseases in rural areas that hardly have any health facility.

Already the council of Governors have petitioned the high court for possible advisory and ruling to amend Kemsa act such that counties can be in liberty to source and procure the essential medical supplies elsewhere rather than depending wholly on Kemsa as the act stipulates at the moment in a rather vote of no confidence in the agency marred by with corruption claims.

“You have seen the corruption in KEMSA, our position is that we (counties) should be allowed to make purchases of Covid-19 commodities from wherever as long as those products are of KEBS approved standards.” COG Chair Wycliffe Oparanya said.

According to a report by Citizen TV, the company is said to have procured medical supplies from private companies which sold the supplies to it at an inflated price and is now stuck with the goods and will be compelled to sell the supplies at a loss.

This came days after a damning report revealed KEMSA could not account for Ksh 43 billion COVID-19 funds and procurements malpractices laid bare.

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