REMARKS BY THE CHAIRPERSON KEMSA AT THE SUPPLIER’S CONFERENCE ON 10TH JULY 2023
The article provides an overview of the transformation agenda of the Kenya Medical Supplies Authority (KEMSA), focusing on improving governance, procurement processes, and operational efficiency. Key initiatives include implementing robust monitoring and evaluation mechanisms, automating supplier registration, transitioning to annual fixed quantity contracts, and introducing a new Enterprise Resource Planning (ERP) system to enhance supply chain management. KEMSA is also prioritizing the procurement of essential medical supplies, ensuring prompt payment to suppliers, and engaging stakeholders in the decision-making process. The aim is to strengthen KEMSA's capacity to deliver timely and high-quality medical supplies across Kenya.

Ladies and gentlemen,
I stand before you today as the Chair of the Kenya Medical Supplies Authority (KEMSA) to provide an overview of our transformation agenda and highlight the key initiatives we have undertaken to ensure a fit-for-purpose organization. I am grateful for the presence of esteemed stakeholders who have played a crucial role in our journey towards a more efficient and effective KEMSA.
Addressing Governance Issues
I will begin by addressing the governance issues that have been a matter of concern. KEMSA is committed to upholding the highest standards of governance and transparency and we have begun rolling out robust measures on Monitoring and Evaluation mechanisms, establishing clear guidelines for procurement, and leveraging on technology to create end-to-end visibility.
In terms of procurement, KEMSA has embarked on several new initiatives to enhance efficiency and transparency. We have implemented the automation of supplier registration processes, streamlining the onboarding of qualified suppliers while minimizing potential risks. This ensures we onboard a pool of reliable and trusted vendors who can meet our stringent quality standards.
Furthermore, we have made a significant shift from two-year framework contracts to annual fixed quantity contracts. This change allows us to adapt more swiftly to evolving market conditions and optimize procurement strategies based on demand and supply dynamics. Additionally, we have introduced lotting of tenders to facilitate multiple awards, promoting competition and ensuring a diverse pool of suppliers.
Recognizing the power of technology in driving organizational efficiency, KEMSA has invested in the acquisition and implementation of a new Enterprise Resource Planning (ERP) system. This technology will revolutionize our operations, enhancing end-to-end visibility and enabling data-driven decision-making. The new ERP system will improve supply chain management, optimize inventory levels, and provide real-time insights into the status of our operations. This investment underscores our commitment to leveraging technology for the betterment of healthcare delivery in Kenya.
The Board has also directed the management to prioritize the procurement of vital supplies, tracer items and class-A products that are fast moving as they’re urgently required and regularly utilized in all public health facilities. This, while serving the urgent needs of end users, will serve to mitigate the accumulation of dead and slow moving stock and ensure that the organization remains on solid financial footing. We must move away from procurement as a supply driven process to focusing on procuring those items that result in quick turnover because they are in demand from our end users.
To achieve our transformation goals, it is imperative that we have functional systems and structures in place. We have focused on strengthening our internal processes to ensure a seamless and reliable supply chain. This includes improving inventory management, optimizing distribution channels, and re-engineering our logistics capabilities. By doing so, we aim to provide timely and quality medical supplies to healthcare facilities across the nation.
Prompt Payment of Suppliers
KEMSA is acutely aware of the importance of supporting the local industry and ensuring the sustainability of our healthcare supply chain. As part of our transformation agenda, we are actively working on establishing a framework for prompt payment of suppliers because we understand that delayed payments can have a detrimental impact on businesses, especially smaller enterprises, and can hinder their ability to invest in innovation and maintain consistent production levels. By ensuring timely and prompt payments, we aim to foster a conducive environment for local suppliers to thrive and grow. This framework will not only enhance the stability of our supply chain but also contribute to the overall economic growth and development of Kenya. We are committed to fostering a mutually beneficial relationship with our suppliers, recognizing their vital role in delivering high-quality medical supplies to our healthcare system.
Stakeholders Engagement
Recognizing the importance of stakeholder engagement, we value the collaboration and partnership of various stakeholders such as yourselves in the healthcare sector. We understand that our success lies in our ability to work together towards a common goal. We remain committed to fostering open lines of communication and actively involving stakeholders in decision-making processes. By doing so, we can better understand your needs and concerns and ensure that our services align with your expectations.
Recapitalization efforts are an ongoing priority for KEMSA. We understand the significance of financial stability in sustaining our operations and fulfilling our mandate. We have been working diligently to secure adequate resources and explore innovative funding models to support our procurement and distribution activities. With the support of the government and other partners, we are confident in our ability to overcome financial challenges and maintain a sustainable organization.
Conclusion
In conclusion, the transformation agenda of KEMSA encompasses governance reforms, functional systems and structures, stakeholder recognition, recapitalization efforts, new initiatives in procurement, and automation. We are determined to overcome challenges, strengthen our organization, and ensure the efficient and reliable delivery of medical supplies to all corners of our nation. We look forward to working hand in hand with you as part of our very important stakeholders as we forge ahead on this journey of transformation and excellence.
Thank you, and may we continue to strive for a healthier and prosperous Kenya.