Kenya: KEMSA Allocated Kshs.2 Billion By National Assembly in Supplementary Budget

22 November 2023

Nairobi — The Kenya Medical Supplies Authority (KEMSA) has been allocated Sh2 billion by the National Assembly in a Supplementary Budget to increase its Order Fill Rate from the current 60 to more than 80 percent.

This is in fulfillment of President William Ruto's pledge to strengthen KEMSA, to enable it effectively provide essential medical supplies, to realise the Kenya Kwanza promise to successfully roll out Universal Health Coverage.

Speaking during a one-day engagement forum themed Fostering Collaborative and Strategic Partnerships, Irungu Nyakera, Board Chair, KEMSA told the County Executives Committee and Chief Officers from all 47 counties, that the funds allocated will strictly be earmarked for procurement of Health Products and Technologies to meet demand.

"This money is not going for any construction or development, it will be used specifically to pay our suppliers so that we ensure our order fill rate gets to where it is supposed to be," said the Chair.

During the annual event hosted by KEMSA and attended by over 200 delegates from across the counties, the key concern raised was the availability of adequate stocks to provide healthcare to mwananchi.

Nyakera expressed concern that the major hindrance to KEMSA increasing its medical stocks availability is because of its inability to pay its suppliers, with the current debt owed being at a staggering Kshs.2.6 billion.

On the other hand, counties owe KEMSA Kshs.2.8 billion which if collected would enable the Authority to restock.

Dr Andrew Mulwa, Ag. Chief Executive Officer, KEMSA stated that the Constitution guarantees every Kenyan the highest attainable standards of health and this can only be achieved if we all play our rightful role.

"We need to have an engagement so that everyone understands that KEMSA runs a revolving fund, such that whether you pay all your debt today, or pay all your debt, you still have to make an order followed by a delivery meaning that it is a cycle," said Dr. Mulwa.

He urged counties to support KEMSA in developing a mechanism to address the vicious debt cycle which has a major impact in liquidity and ultimately the Authority's ability to maintain adequate stocks.

Machakos County CEC for Health on behalf of the Caucasus Mr. Daniel Yumbya, stated that the major challenge facing counties is the depressed funding for healthcare which makes it difficult to plan adequately.

"If we had enough funds, we would not owe KEMSA any monies. We are able to provide health products and technologies to our facilities because off the credit facilities provided by the Authority," said Yumbia.

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