KEMSA, Health CS Lock In Reform Pact, Set 90% Order Fill Goal in FY 2025/2026 Turnaround Drive

The Kenya Medical Supplies Authority (KEMSA) has signed its FY 2025/2026 Performance Contract with the Ministry of Health, committing to bold turnaround targets  including a 90% Order Fill Rate and faster delivery timelines to public health facilities nationwide.

The contract, signed with Health Cabinet Secretary Aden Duale, sets a results-driven agenda for the period 1st July 2025 to 30th June 2026, anchored on accountability, operational discipline and measurable service delivery improvements.

At a time when efficiency and reliability in medical supplies are central to the success of Universal Health Coverage (UHC)/Taifa Care, the agreement positions KEMSA at the core of Kenya’s health sector reform and performance reset.

Bold Targets Signal Operational Reset

At the heart of the FY 2025/2026 contract is a commitment to raise KEMSA’s Order Fill Rate from

approximately 55% to 90%, a move expected to reduce stock-outs and improve predictability for counties and public health facilities.

The Authority will also cut order processing and delivery turnaround time to 7 days for hospitals and 10 days for primary health facilities, reinforcing responsiveness and strengthening trust across the supply chain.

Additional performance benchmarks include 100% absorption of Government of Kenya and externally mobilized funds, reduction of pending bills ratio to 1%, enhanced liquidity and financial sustainability, 30% affirmative procurement allocation for youth, women and PWDs, 40% promotion of local manufacturing, and strengthened governance, compliance and anti-corruption safeguards.

These measures align KEMSA’s operations to national priorities under Vision 2030 MTP IV and the Bottom-Up Economic Transformation Agenda (BETA).

Government Demands Results

CS Aden Duale described the contract as a performance instrument, not a ceremonial exercise, emphasizing that tangible improvements must be felt across the country.

“This Performance Contract is about delivery. Kenyans must see improved availability, affordability and timely access to essential health products in every public facility.

Accountability and measurable results are non-negotiable,” said CS Duale.

He reiterated that a reliable and efficient KEMSA is indispensable to the successful rollout of Taifa Care and broader health sector reforms.

Board Reinforces Governance and Oversight

KEMSA Board Chair Samuel Tunai framed the contract as a governance milestone in the Authority’s reform journey.

“The Board is fully committed to strengthening oversight, enhancing transparency and driving institutional stability. This Performance Contract

reinforces our resolve to deliver measurable improvements and rebuild confidence in the supply chain,” Tunai said.

He emphasized that disciplined execution and accountability at all levels will define the FY 2025/2026 financial year.

CEO Commits to Performance and Delivery

KEMSA CEO Dr. Waqo Ejersa termed the signing a defining moment in the Authority’s turnaround drive.

“We are shifting from intention to execution. Achieving a 90% Order Fill Rate and reducing turnaround times will dramatically improve service delivery. Our focus is simple; ensure that no Kenyan health facility experiences preventable stock-outs,” Dr. Ejersa said.

He added that digital transformation initiatives, ERP integration and the commissioning of the National Commodities Supply Chain Centre will enhance end-to-end visibility, efficiency and accountability.

Turning Strategy into Measurable Impact

The FY 2025/2026 Performance Contract translates KEMSA’s Strategic Plan into concrete, time-bound deliverables  accelerating infrastructure modernization, optimizing Procure-to-Pay and Order-to-Cash processes, driving revenue growth and strengthening data-driven reporting to the Ministry of Health, counties and development partners.

A Defining Moment in KEMSA’s Turnaround Journey

The signing of the Performance Contract marks more than the start of a financial year, it signals a structured, measurable reset of KEMSA’s operational model.

With clear targets, strengthened governance and heightened oversight, the Authority is positioned to deliver improved reliability, financial stability and enhanced public trust, reinforcing its mandate to save and transform lives through timely access to quality, affordable essential health products across Kenya.