Wycliffe Oparanya to face senators over Kemsa debt

Nyeri County officials distribute medicines supplied by the Kenya Medical Supplies Agency. Most counties have not paid debts owed to Kemsa. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • Kemsa has a working agreement with the counties that requires them to make payments within 45 days after getting deliveries.
  • President Uhuru Kenyatta has picked universal healthcare as one of four key planks he intends to use to transform the country's economy.

The Kenya Medical Supplies Agency (Kemsa) is facing a financial crisis over delayed payment of Sh2.4 billion owed to it by county governments, a development that is threatening to cripple medical services in the country.

The crisis has since alerted the Senate Committee on Health, which has summoned Council of Governors chairman Wycliffe Oparanya to explain why the counties are not meeting their obligations.

On Sunday, Trans Nzoia Senator Michael Mbito, who chairs the committee, said Mr Oparanya, alongside Kemsa CEO Jonah Mwangi and Controller of Budget Agnes Odhiambo, are required to explain why the rules have not been followed even as he accused Dr Mwangi of doing little to recover the money at a time his services are greatly required.

“Counties are given the supplies on credit and required to pay later. It is unfortunate because we have information that they have resorted to buying the drugs elsewhere even before they clear their debts. This is not a sign of good faith,” Mr Mbito said, adding: “The CoG chairman must come and explain why this is happening.”

DEFAULTERS

Kemsa badly needs the money to buy and supply drugs but the unpaid debts will mean that it looks elsewhere.

Of the 47 county governments, Nairobi, with Sh309.3 million, is leading the pack of defaulters followed by Kitui (Sh200.8 million), Kilifi (Sh125.5 million), Narok (Sh104.6 million), Nakuru (Sh98.3 million), Kisumu (Sh77.5 million) and Nandi at Sh76.4 million.

Interestingly, after accruing the debts, the counties have now resorted to getting drugs from other suppliers as Kemsa reels in debt.

The medical supplies agency has a working agreement with the counties that requires them to make payments within 45 days after getting deliveries.

However, this has not happened despite the counties getting money from the national government approved by Controller of Budget for the payments.

REPAYMENT PLAN

Kemsa has the responsibility to procure, store and distribute drugs and medical supplies for prescribed public health programmes, the national strategic stock reserve, prescribed essential health packages and national referral hospitals.

Mr Oparanya’s county of Kakamega owes Kemsa Sh69.4 million. Among the alternatives the senators are toying with is to withhold the money before disbursements to the counties are made then transfer it to Kemsa “so that Kenyans are assured medicines at all times”.

Yesterday, neither Mr Oparanya nor his vice chairman Mwangi wa Iria (Murang’a), whose county owes Kemsa Sh21.9 million, responded to our inquiries despite numerous calls.

Dr Mwangi and Ms Odhiambo were equally unavailable for comment.

“I don’t understand why the management of Kemsa has been so lackadaisical in demanding to have the counties settle their obligations at a time the crisis has threatened the health sector,” the Senator said.

BUDGET

President Uhuru Kenyatta has picked universal healthcare as one of four key planks he intends to use to transform the country's economy.

Affordable housing, food security and manufacturing are the three other pillars of his grand plan dubbed the 'Big Four Agenda'.

The Health Laws (Amendment) Bill, 2018 seeks to address the issue by making it mandatory that counties buy drugs from Kemsa and ensure that payments are made promptly.

However, its return to Parliament for further consideration by the President means that the problem can only persist.

In the current financial year, the combined county government budgets approved by county assemblies amounted to Sh450.2 billion.

It comprises a cumulative Sh272.59 billion (60.5 percent) allocated to recurrent expenditure and Sh177.61 billion (39.5 percent) for development activities that includes acquisition of medical supplies.

To finance their budgets, the counties have been allocated Sh314 billion in equitable share of revenue raised nationally, Sh25.5 billion as total conditional grants from the national government and Sh33.24 billion as conditional grants from development partners.