KEMSA, SHA, DHA and National Referral Hospitals Seal Pact to Enhance Health Commodity Security

Today at Afya House, Kenya marked a historic milestone in the transformation of its healthcare system.

Health CS Aden Duale, flanked by PS Dr. Ouma Oluga, DG Dr. Patrick Amoth, and CEOs from National Referral Hospitals, witnessed the signing of a Cooperation Agreement between the Ministry of Health, the Kenya Medical Supplies Authority (KEMSA), the Social Health Authority (SHA), the Digital Health Agency (DHA), and National Referral Hospitals.

Speaking at the ceremony, CS Duale emphasized that this Agreement is not merely a formality, it is a solemn pledge to deliver on the constitutional right to health, as guaranteed by Article 43 of the Constitution. It is a deliberate action under the Bottom-Up Economic Transformation Agenda (BETA) and Taifa Care, aimed at operationalizing the four pillars of Universal Health Coverage (UHC).

At the heart of this Agreement is health commodity security because a nation’s greatness is measured by how it treats its most vulnerable. No Kenyan should ever be sent home without treatment due to lack of medicines. All National Referral Hospitals will now procure their health products and technologies from KEMSA as the first point of call.

To ensure success, the government has recapitalized KEMSA with KES 1.5 billion and is finalizing a KES 10 billion credit line to guarantee uninterrupted supply of essential commodities and a 100% Order Fill Rate (OFR). Debt recovery efforts are underway to reclaim what is owed by counties, alongside operational reforms to boost efficiency and shorten delivery times.

The Ministry of Health, through the DHA, is driving a digital transformation of the supply chain, deploying platforms for forecasting, demand planning, and track-and-trace technology to monitor every medicine from manufacturer to patient, eliminating diversion and counterfeits.

This Agreement binds five institutions, each with a defined mandate:

* Ministry of Health: policy, oversight, coordination, and evaluation.

* KEMSA: procurement, warehousing, and timely, quality delivery of supplies at below-market prices, maintaining at least a 90% OFR.

* National Referral Hospitals: planning, managing needs, budgeting, and facilitating timely payments.

* SHA: processing claims and ensuring transparent, timely fund disbursement.

* DHA: securing and supporting all processes through digital health platforms.

In this regard, KEMSA CEO Dr. Waqo Ejersa was tasked to deliver on the Agreement by ensuring:

* Continuous supply of quality, affordable health products and technologies.

* KEMSA prices remain below market rates.

* Patients receive medicines on time and without stock-outs.

* Supplies are delivered promptly and reliably.

* SHA payments are matched with timely fulfillment.

* The digitised KEMSA supply chain provides end-to-end visibility and accountability.

Dr. Ejersa reaffirmed that KEMSA has embarked on organisational wide reforms to improve efficiency at all levels, with a strong focus on enhancing OFR and Order Turnaround Time (OTT) to ensure hospitals and patients receive medicines without delay.

CS Duale concluded:

“As we sign this Agreement, we reaffirm our commitment to the Kenyan people: there shall be no shortage of medicines, quality will never be compromised, and patient care will always come first.”