Inside the financial crisis at KEMSA that has caused shortage of crucial drugs, supplies

The Council of Governors health committee was the first to raise the red flag over the imploding Kenya Medical Supplies Agency (KEMSA) medicine and supplies shortage to counties, which has left the devolved units at the mercy of private suppliers charging exorbitantly for medical commodities that should have been supplied by KEMSA.

It is now emerging that the problem runs deeper. Documents in our possession show that the KEMSA stores are facing a stock out of 390 out of a possible 462 medical commodities, which include amongst others, painkillers, antibiotics and other commodities, including gloves, syringes, cotton wool, bandages plasters, pap smear kits and yellow fever vaccines.

These commodities stock-out were occasioned by reluctance by suppliers to supply the country's medical stores owing to debt of close to Ksh.4 billion that KEMSA owes to different categories of suppliers.

According to a KEMSA payables statement for the financial year 22/23, as of April this year, KEMSA owes a total of 3,860,275,691 shillings.

Of that amount, Ksh.23.6 million is due to operations, KEMSA capital Ksh.3.5 billion is key for the acquisition of medical commodities, Ksh.55.97 million as the debt accrued for supplies during the covid 19 pandemic, Ksh.107.5 million as un-invoiced Covid-19 receipts.

Ksh.24.85 million is owed for the distribution of KEMSA supplies, while a further Ksh.150 million is listed as the debt accrued for distribution alone this year, for the period of January to March.

While the bulk of the debt is owed to suppliers, KEMSA paid over nine hundred million shillings to Covid -19 suppliers in just six months, from July to October last year, the months preceding and after the elections.

Among the companies that were paid include KEMRI; Ksh.7.6 million for the transport services, Abyssinia Group of Companies,18 million shillings for the supply of KN9595 masks, Medisystem Supplies and Services, supply of theatre boots at Ksh.115,000, La Miguella holdings a total of Ksh.90 million for the supply of PPE kits.

Shop N Buy, whose owners were at pains to explain how they got a one billion shillings tender to supply Covid 19 supplies, were paid 498,750 million for the supply of PEE kits and KN95 masks, Medilife Biologicals, 110 million shillings for the supply of 3-ply and KN95 face masks, Salgad investment limited were paid 12 million shillings for the supply of paracetamol, TrippleAge 12 million for the supply of KN95 respiratory face masks and Pasaiba Tourmaline limited got 4.5 million shillings for the supply of KN95 respiratory face masks.

The Covid-19 payments come at the expense of the procurement of essential commodities, a move that now sees the country's majority of healthcare seekers facing shortages of basic and critical medicine and medical commodities.

Sources intimate that the Covid-19 payments ate into the bulk of KEMSA's capital that could have been invested in the organisation's core mandate, which is ensuring the supply of medicine across the country.

KEMSA also stands accused of prioritising clearing the debts that do not touch on its core mandate, the reason why debts owed for operations are less than the ones owed for the procurement of medical supplies.

The stockout at Kemsa is just part of the troubles plaguing the organisation, as it also faces a probe into the bungled procurement of treated nets by the global fund that sees the country stand to lose a 3.7 billion shillings tender.