Counties owe medical supplies agency Kemsa Sh2 billion in pending bills

Nyamira governor John Nyagarama (holding flag) and Kemsa commercial services director Eliud Mureithi (in spectacles) flag off trucks carrying drugs to sub-county hospitals in Nyamira, March 22, 2018. PHOTO | BENSON MOMANYI | FILE

What you need to know:

  • Nairobi County has the highest debt of Sh285 million
  • Nairobi Governor Mike Sonko has pledged to clear the bill in a week.
  • His Isiolo counterpart Mohamed Kuti has also committed to settle the Sh15 million pending bills in two weeks.
  • Kemsa and counties have an agreement that requires the devolved governments to make payments within 45 days after the authority distributes drugs and pharmaceutical products.

Counties owe the Kenya Medical Supplies Authority (Kemsa) about Sh2 billion for drugs and other medical supplies.

Nairobi County has the highest debt of Sh285 million accumulated during the previous regime.

Kemsa’s director for commercial services Eliud Mureithi said administrative changes in most counties following last year’s polls prompted the devolved units to conduct an audit of pending bills, occasioning the delay in payment.

The disbursements of funds to counties, he said, were also impacted by last year’s fractious elections, he said

“Most counties are still conducting audit of pending bills but we have seen some good will from a number of county governments in servicing their debt. Others have committed to settle the amounts once the audit is completed,” said Mr Mureithi.

Failure to settle the debt by counties, he said, would affect Kemsa’s operations, putting it in a tight spot in terms of procurement of medical commodities.

The agency’s official said part of the Sh2 billion debt can be traced to last year while some has accumulated in the first few months of this year

While requesting counties to make the payments, Mr Mureithi said the authority had signed an MoU with the 47 governors together with respective county Health and Finance executives to commit and clear the bills.

“Governors appreciate that Kemsa’s bills are not fake and there is consensus that ours is genuine hence they have expressed their will to settle the payments,” he added.

Clear the bill

Mr Mureithi said Nairobi Governor Mike Sonko has pledged to clear the bill in a week.

His Isiolo counterpart Mohamed Kuti has also committed to settle the Sh15 million pending bills in two weeks.

Mombasa County had already cleared its debt, said the agency’s official.

Other counties including Kakamega, Makueni and Kitui, he said, were the best payers.

Kemsa and counties have an agreement that requires the devolved governments to make payments within 45 days after the authority distributes drugs and pharmaceutical products.

The agency, which only relies on the revolving fund, can, however, resort to suspending accounts or opt for legal ways if a county fails to settle the debt.

Mr Mureithi urged counties to make payments faster to make the Universal Health Care (UHC) agenda successful.

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