Nairobi — A Senate watchdog committee has raised alarm over the extravagance of the Council of Governors (COG) for signing a deal worth billion signed by counties to lease medical equipment to be used in implementation of Social Health Authority (SHA).
The Senate Committee chaired by Homabay Senator Moses Kajwang raised issues over the deal signed between National Government, devolved units and business provider saying it's a claw back to devolution as health is a devolved function.
In what appears to be a cornered deal, Council of Governors Vice Chair Mutahi Kahiga disclosed that counties have been forced to sign the deal to ensure service delivery to the people as majority of them have no fiscal headroom to procure the equipment.
"We did not procure the machines, it's the ministry of health that did the procurement, they even put the advertisement in the newspapers, we were not involved," Kahiga said.
The Nyeri Governor explained that any attempts to decline signing the deal over the secrecy on the procurement deal would only hurt the common Mwananchi because most the medical machines in counties bought under the leasing agreement.
"Currently dialysis machines are not working in the county Governments hospitals because the equipment that were provided under MES has run its course, anyone that is being put in those machines is risking his life." He told the committee.
Details show so far 34 County governments have signed the deal with scant details on the legal framework for the procurement of the medical equipment as National Government through the Ministry of Health are the mastermind of the deal.
"What they have done is to set 23 lots of equipment, so you pick a lot that you think is required for your specific hospital, after picking is when you know the providers, but whoever selected them that was a program decided by the national government, we are just landlords," Kahiga averred.
Busia Senator Okiya Omtatah emphasized that the leasing equipment deal was an illegality questioning the provisions in the Public Procurement and Disposal Act which backs the agreement which is poised to rake in billions for business providers.
"What law are you using to sign the contract, did you consult your attorney before signing?" queried Omtatah.
The Committee Chair highlighted it was unfortunate for senators to put up a spirited fight for devolved units to have increased allocation only for the funds to be utilized in medical equipment leasing which may not have value for money for the electorate.
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"Don't be defensive, because we want to assign the problem on the right level we want to tell the ministry you can't procure for county governments, that you can't do business with people's health and people's lives," Kajwang noted.
The COG Vice Chair pointed out the sustainability of the medical lease agreement is still uncertain given the upheavals witnessed in the transition and implementation of the Social Health Insurance Fund (SHIF).
"What I must admit here is that we have rushed this thing, we are too fast and we might crush along the way.I don't want to say this is the best deal, I even don't know if it will work," Kahiga said.
The intergovernmental participation agreement signed by counties indicates that some of the equipment will be provided on a lease-to-own basis.
County of Governors chairperson Anne Waiguru and Health CS Susan Nakhumicha sign an Intergovernmental Participation Agreement on June 15, 2023.
The government plans to open bidding for the servicing and management of leased medical equipment under the Managed Equipment Services.
