Business Daily (Nairobi)
Mwaura Kimani
8 July 2009
Kenyans could be headed for better health services following a move by the government to appoint financial managers to handle billions of shillings from donors.
In what analysts said heralds sound financial management of donor funds, the Public Health ministry is now seeking an agent to manage funds from the Centre for Disease Control and Prevention (CDC), a key donor to the health sector.
This follows revelations that some key health institutions are currently facing severe cutbacks by donors who have held back funding following allegations of corruption, putting at risk efforts at providing good healthcare.
Experts said billions of shillings in donor funds meant for the sector has been misused.
While the CDC move is an isolated case, they argued more donors could move the same direction in what will lock out corrupt health officials from the funds. This year alone, the health sector expect over Sh4 billion from development partners according to 2009/2010 budget estimates.
CDC works closely with Kenya's foremost medical research institute --Kenya Medical Research Institute (Kemri) -- which has for more than a decade been embroiled in allegations of corruption.
Experts said following the revelation of mismanagement of funds in most recipient institutions, major donors are increasingly demanding to be given more say in vetting personnel and handling the procurement.
"Recipient are expected to have systems, policies and procedures in place by which they manage grant funds and activities," says a tender by the Ministry of Public Health seeking the financial management agent, advertised this week.
Interested firms--which must provide among other staff a financial management specialist and an internal control officer--have up to July 27 to apply.
Investigations over the alleged lose of funds at Kemri amounting to over Sh476 million, some of it belonging to CDC, are ongoing. Kemri's founding director, Dr Davy Koech, was suspended two years ago to make way for investigations into alleged loss of funds at the institute.
CDC, through the US Department of Health and Human Service--a division of the Federal Government--currently has three grant programmes with Kenya.
Any misuse of donor funds, which could trigger more cutbacks is likely to affect key research on malaria vaccines, child diarhorrea, drug-resistant TB, HIV/Aids as well as other health initiatives supported by the financiers.
The financial manager will also conduct audits and reviews on implementation of funded programmes as well as ensure timely disbursement and use of the monies.
Public Health Minister Beth Mugo said the move was meant to instil sound financial management in the running of the donor-funded projects.
The move, analysts said could be a lucrative deal for leading audit firms especially coming at a time when the consultancy business is facing challenges as global economies weaken in the face of financial crisis.
The local consultancy scene is facing a narrower client base who are now asking for a cut in professional fees amid profit squeeze in corporate Kenya.
Last week, donors picked PricewaterhouseCoopers to manage money given to the troubled Somalia Government. Government intervention in the health sector has been weak over the years since the budget prioritises on recurrent expenditure in form of wages, operational costs, travel, among others, taking about 80 per cent of the national budget.
"Over-reliance on tax revenues for public health financing has meant that in the event of unstable macroeconomic outlook facing Kenya, this would negatively affect exchequer allocations for public health," says Treasury.
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