A fresh health crisis looms in the counties after a Senate committee ordered the Kenya Medical Supplies Authority to stop delivering medical supplies to counties over a Sh3 billion debt.
The Senate Health Committee directed the agency after revelations that almost all the county governments have accumulated massive debts. Only Wajir county does not owe Kemsa.
Some counties have not paid Kemsa for more than two years.
“As a committee, we must get to the bottom of this matter and get a solution today. Any county whose debt is more than 30 days old must not get any supplies,” Narok Senator Ledama Olekina said.
Kemsa CEO Andrew Mulwa told the committee counties have failed to pay despite frequent reminders and threats to cut supplies.
The team is chaired by Uasin Gishu Senator Jackson Mandago.
“We confirm that Kemsa’s debts owed by the counties as of May 8, 2024, is Sh3.03 billion. Out of this amount, Sh2.08 billion has been outstanding for more than 90 days,” Mulwa said.
“We have counties with accumulated debts beyond 730 days. That is more than two years. For example, Homa Bay and Nakuru.”
Mulwa was responding to a statement sought by Nandi Senator Samson Cherargei on the amount owed to the agency by the counties.
The committee’s directive could plunge the counties into a serious health crisis as the authority currently supplies 40 counties.
Mulwa termed seven counties "notorious", adding that the devolved units have even cut links with Kemsa.
They are Nairobi, Homa Bay, Taita Taveta, Makueni, Kakamega, Trans Nzoia and Kisumu.
“These counties no longer buy drugs from us. Nairobi, for instance, last procured from us in January 2023,” Mulwa said.
The current law mandates public entities, including counties, to strictly procure their health commodities from Kemsa.
According to the submissions by the CEO, Kilifi, Nairobi, Machakos, Kitui and Tharaka Nithi owe the highest amount.
Kilifi owes Sh276.62 million, Nairobi owes Sh243.79 million, Machakos owes Sh117.41 million, while Kitui and Tharaka Nithi have yet to pay Sh116.37 million and Sh150.27 million, respectively.
Other counties with huge debts are Homa Bay Sh104.81 million, Vihiga Sh94.42 million, Meru Sh85.34 million, Mandera Sh82.93 million and Garissa Sh82.73 million.
Counties that owe the agency the least amount are Kisumu Sh328,008, Makueni Sh74,879, Kiambu Sh2.06 million, Kericho Sh6.63 million, Mombasa Sh7.31 million.
The lawmakers questioned the agency’s policy to recover the debt.
“Why do you continue to supply counties that owe you millions of shillings? No county has ever gone for more than three months without getting their exchequer releases,” Olekina said.
Murang’a Senator Joseph Nyutu also took issue with Kemsa.
“Even a shopkeeper cannot allow a buyer to take an item before they clear what they owe. I support, Kemsa must stop supplying these counties,” he said.
In his response, Mulwa said the agency is caught up in a moral dilemma.
“We are clearly in a moral dilemma. If we withdraw services and limit operations to strictly prompt procurement, then we could as well be telling patients that they can go without drugs,” the CEO said.
But the senators said the ‘leniency’ of the Kemsa management has forced the agency to overrely on the exchequer for funds.
The CEO told the committee that they have sent several reminders, engaged the county management, blocked accounts of some counties and engaged the National Treasury in a bid to recover the funds.
“Kemsa has embarked on aggressive debt collection strategies to enhance liquidity and ensure the continuous supply of Health Products and Technologies,” he said.