The parliamentary committee on Finance and Budget gave the ministry one month from February 15 to advise if counties should purchase the medical kits or abandon the project when it lapses in December.
The national government contracted five firms to lease specialised kits such as theatre equipment, renal kits, ICU equipment and radiology equipment to the counties for treating diseases like cancer and diabetes.
The Auditor-General has in the past questioned why the National Treasury has been deducting equal sums from the counties for different types of kits with varying market prices.
The Ministry of Health has one month to submit an exit plan for county governments in the controversial multi-billion medical leasing deal for provision of specialised medical kits.
The parliamentary committee on Finance and Budget gave the ministry one month from February 15 to advise if counties should purchase the medical kits or abandon the project when it lapses in December.
The national government contracted five firms to lease specialised kits such as theatre equipment, renal kits, ICU equipment and radiology equipment to the counties for treating diseases like cancer and diabetes.
The order comes amid counter-accusations between the ministry and counties over a lack of consultations before the project launch.
But the deal has been shrouded in controversy as medical kits worth millions of shillings lay idle across health facilities in the 47 counties due to lack of specialised staff to operate them, lack of power and rooms to set them up.
“Within the next one month, the Ministry of Health should submit an exit report for the leasing of the medical equipment programme."
“It is critical that the persistent and pertinent issues surrounding this project are addressed to guarantee smooth transition,” the committee says in a report.
Leasing documents for the project tabled in Parliament show that counties have the option of purchasing the equipment or declining to extend the contract when it lapses in December.
Shenzhen Mindray Bio-Medical Electronics Limited, Esteem Industries, Bellco SRL, Phillips East Africa Limited and General Electric East Africa Limited that have been providing the kits have pocketed billions of shillings even as the kits lie idle.
Treasury has proposed Sh5.2 billion to pay for the deal in the year starting June pushing the total expenditure on the project to at least Sh40 billion at the end of the seven years.
The Treasury allocated Sh4.5 billion every year or Sh95.7 million per county in 2015/16, 2016/17 and 2017/18 financial years.
The amount was increased to Sh9.4 billion or Sh200 million per county in the 2018/19 period but reduced to Sh6.2 billion or Sh131.9 million per county in the year ended June 2020.
MPs also want the ministry of Health to outline the successes of the project amid increasing questions over value for taxpayer money.
The Auditor-General has in the past questioned why the National Treasury has been deducting equal sums from the counties for different types of kits with varying market prices.
