In bad books: 8 counties that have not paid Kemsa's money

According to Kemsa, the counties have defaulted on the 45-day credit period. 

Nairobi County is leading with a Ksh.243 million unpaid debt, while Homa Bay County has a debt of Ksh.104 million. 

Other counties include Busia (Ksh.82M), Nakuru (Ksh.53M), Trans Nzoia (Ksh.49M), Kisumu (Ksh.35M), Mombasa (Ksh.13.6M) and Nyamira (Ksh.9M). 

In an engagement with editors, Kemsa acting CEO Dr. Andrew Mulwa said talks between the authority and governors are ongoing, and the latter has shown willingness to settle the debts.

With existing debts from counties, Kemsa has also encountered a loss from protective equipment procured during the COVID-19 pandemic. 

The authority had a Covid stock valued at Ksh.5.45 billion. In August 2021, the Ministry of Health authorized the sale of commodities worth Ksh.5.24 billion at a market price of Ksh.3.2 billion. This resulted in a loss of Ksh.2.04 billion. 

Commodities worth Ksh.548 million have since expired, and Kemsa projects a further impairment loss of Ksh.753 million. This will result in a cumulative loss of Ksh. 3.3 billion. 

The loss is a result of the decreased demand for goods such as masks, sanitisers and other protective gear that were needed at the peak of the pandemic. 

Mulwa added that Kemsa will also explore possibilities of venturing into the private sector, in order to narrow the gap experienced in access to drugs and other medical supplies. 

“We dare dream to venture into the private space so that we are also able to provide quality and cheap drugs to the private sector. There is a void we can fill,” said the CEO.