Inaccurate, non-factual: KEMSA dismisses Auditor General's report on losing billions

The Kenya Medical Supplies Authority (KEMSA) has denied the allegations of losing billions of shillings for the Financial Year ending June 30, 2023 as reported by the Office of the Auditor General. Addressing the allegation of supplying Ksh.572 million to non-existent health facilities, KEMSA said they created centralised stores as delivery points for distributing health care products to counties. According to KEMSA, the procurement and distribution process was done as per the distribution lists provided by the respective programs. The Authority clarified that the centralised stores are not actual health facilities, which had raised concerns about why the stores appeared as health facilities on the distribution list. KEMSA was also accused of issuing health products before testing. In response, the Authority said that all products are sampled and tested as per the Quality Assurance sampling procedure. This depends on the nature of the product with some requiring chemical and physical analysis while others require visual inspection. “The Authority has an ISO-certified laboratory and also partners with other agencies like NCQL to undertake further product quality tests,” the statement read in part. KEMSA confirmed losing revenue worth Ksh.168 million after Global Fund (international organisation that invest additional resources to end epidemics globally) dropped the Authority as the procuring entity for long-lasting insecticidal nets (LLINs). KEMSA, however, confirmed that it maintained the function of warehousing and distributing the nets. Addressing procurement irregularities, KEMSA explained that all contract extensions were granted in line with the Public Procurement and Assets Disposal Act 2015. Responding to allegations of procuring excess purchases of Ksh.3.5 billion, KEMSA said that requests for procurement change over time and are done based on projected demand at that period. “However, changes in demand may arise due to various factors leading to either over or under-stocking of a certain commodity. Delays in delivery of goods from various suppliers do affect the stock levels at any given time.” KEMSA also responded to concerns on lack of progress of reforms despite a Ksh.300 million budget, saying that the funds were used to procure ERP (Enterprise Resource Planning) system which is expected to be active by December 18, 2024. “The Authority is well poised to optimally achieve the mandate of procurement, warehousing and distribution of drugs and medical supplies for the prescribed public health programs.”