KEMSA records turnaround in supply chain performance as Order Fill Rate hits 90%

The Kenya Medical Supplies Authority (KEMSA) has staged a turnaround in its supply chain performance, increasing its Order Fill Rate from a low of 40% in 2022 to over 90%. 

The milestone was highlighted during a session of the Health Summit, chaired by Cabinet Secretary for Health Aden Duale and moderated by Principal Secretary for Medical Services Dr. Ouma Oluga.

Addressing delegates, Deputy President Kithure Kindiki commended the authority's recovery, noting that KEMSA was "in disarray" in 2022 before implementing structural reforms to secure essential medical commodities across the country.

According to KEMSA Chief Executive Officer Dr. Waqo Ejersa, the turnaround was driven by a fundamental shift from a push-based supply model to a demand-driven strategy.

Instead of indiscriminately managing nearly 3,800 Stock Keeping Units (SKUs), the authority said it actively consulted county stakeholders and health facilities to align procurement with actual needs on the ground.

To address financial constraints caused by slow-moving inventory, KEMSA says it adopted a "shrink and grow" business model. This strategy reduced holding costs on unnecessary inventory while concentrating resources on high-demand, critical HPTs.

To ensure supply stability, the authority introduced two-year framework contracts, offering suppliers long-term predictability and reducing frequent stockouts.

KEMSA noted that it also deployed digital inventory solutions, including the CEWAS platform, to improve stock visibility and track replenishment schedules in real time.

Despite the operational gains, Kindiki emphasized that the transformation remains an ongoing process.

He called on health officials to consolidate these gains by integrating KEMSA’s Logistics Management Information System (LMIS) with other national government databases, aligning the agency with Kenya's broader public sector digitization mandate.

The session brought together key national and county stakeholders, including Tharaka Nithi Governor Muthomi Njuki, Makueni Governor Mutula Kilonzo, Kenya Healthcare Federation Chairman Dr. Kanyenje Gakombe, AGC Tenwek CEO Ben Siele, and Kenyatta National Hospital CEO Dr. Richard Lesiyampe.