Nairobi — Missing title deeds worth billions, unrecorded vehicles in daily use, irregular procurement practices and unexplained revenue shortfalls have thrust three of key public health institutions into the spotlight after Parliament uncovered sweeping financial and administrative lapses.
An inquiry by the National Assembly's Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) has flagged serious concerns at Kenyatta National Hospital (KNH), the Kenya Medical Research Institute (KEMRI) and the Pharmacy and Poisons Board (PPB), raising fears of potential losses running into billions of shillings.
The committee, chaired by Navakholo MP Emmanuel Wangwe, was reviewing Auditor-General's reports for the 2022/2023 and 2023/2024 financial years when it unearthed what members described as systemic weaknesses in financial controls and asset management.
KNH: Rental Losses and Procurement Red Flags
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At Kenyatta National Hospital, lawmakers questioned the loss of Sh36 million in rental income from staff housing units, even as the hospital's board approved a 10 per cent rent increase on residential properties, some of which are reportedly earmarked for demolition.
The hospital's occupancy rate stood at 60 per cent, with income already falling 21 per cent below projections figures that baffled the committee.
"If you've already lagged 21 per cent at 60 per cent occupancy, who exactly is this increase benefiting?" Wangwe asked, warning that the burden would ultimately fall on tenants rather than fixing structural inefficiencies.
Auditors also flagged the use of restricted requests for quotations in procuring cleaning materials, bypassing open competitive tendering. Management described a post-award shift to framework contracts as an "error", but MPs questioned whether the move was deliberate, particularly during the COVID-19 procurement period.
Committee Vice-Chairperson Saboti MP Caleb Amisi stressed that audit queries were meant to strengthen accountability.
"These audits are not cosmetic. They exist to protect public funds," he said.
KEMRI: Missing Title Deed and Unrecorded Vehicles
At KEMRI, the committee was confronted with the disappearance of a title deed for a 2.4-hectare parcel of land in Nairobi valued at more than Sh4 billion.
Lawmakers were told that a private developer allegedly used the title as collateral to secure a bank loan without clear authorization from the institute. Although the loan has reportedly been repaid, the original title deed remains unaccounted for, with conflicting explanations from the National Bank and the National Treasury regarding its custody.
Further concerns arose over 66 motor vehicles in active use but not recorded in the institute's asset register. Management attributed the omission to unresolved valuation of donor-funded assets, an explanation MPs rejected as inadequate.
The committee also questioned the establishment of a Sh143 million staff mortgage fund without approval from the Cabinet Secretary, contrary to provisions of the Public Finance Management Act.
Poisons Board: Surveillance Gaps and Land Queries
At the Pharmacy and Poisons Board, MPs raised concerns about regulatory lapses and asset documentation.
Wangwe recounted the case of a patient who reportedly failed to improve after receiving medication locally but recovered after sourcing the same drug abroad -- an anecdote he used to underscore the risks posed by weak oversight.
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"When the financial and management engine is crumbling, even the output will be wanting," he cautioned.
PPB Chief Executive Officer Ahmed Mohamed acknowledged gaps in surveillance, citing porous borders and staffing shortages as major challenges in curbing the influx of substandard medicines.
Auditors further flagged Sh75 million linked to the board's headquarters land, which lacked a valid title deed at the time of audit. Additional concerns included undisclosed land in Machakos and Sh5.25 million spent on vehicle repairs without mandatory inspection reports.
The committee signalled that it will issue firm recommendations once its review is complete, including possible referrals for further investigation where necessary.
