MPs probe KEMSA over Sh19m overpayment and sale of expired drugs
By Maureen Kinyanjui |
The National Assembly committee is now calling for greater transparency and oversight in KEMSA's distribution system.
The Kenya Medical Supplies Authority (Kemsa) is under investigation after a National Assembly probe uncovered a major financial mismanagement.
The Auditor General's report for the Financial Years 2019-2022 shows the authority made Sh1.8 billion in sales in FY 2019-2020, but also sold expired drugs worth Sh120 million.
Keep reading
This raises serious concerns about the agency's accountability and transparency.
The Public Investments Committee on Social Services, Administration, and Agriculture chaired by Navakholo MP Emmanuel Wangwe on Wednesday interrogated KEMSA's leadership, including CEO Waqo Ejersa, acting Finance Director Pauline Jepkemoi, and acting Legal Director Evans Cheruyot.
Lawmakers focused on procurement issues, drug wastage, and the overpayment of millions of shillings to external contractors.
In addition to the expired drug sales, the committee learned that KEMSA had overpaid Sh19.3 million to Timeless Courier Services.
Maragua MP Mary Wamaua questioned how the agency could allow such a significant overpayment without proper oversight.
Unpaid balance claim
"How did KEMSA overpay Sh19 million without due diligence?" she asked, noting that the courier firm is now claiming an unpaid balance of Sh14.9 million.
This raised further concerns about the agency's financial controls and procurement procedures.
The issue of financial mismanagement was compounded by KEMSA's shifting from a centralised "Push" supply model to a decentralised "Pull" system, where counties now place specific orders.
Ejersa explained that this transition led to some commodities having low demand, resulting in expiries.
However, this practice has continued to raise questions, despite KEMSA's efforts to donate near-expiry drugs and implement a "first expiry, first out" policy.
Wamaua expressed concern about the risk of corruption in the donation process.
"When you donate drugs, how do you prevent counties from falsely claiming purchases? This loophole could fuel corruption," she said.
The committee is now calling for greater transparency and oversight in KEMSA's distribution system.
Land documents missing
There were further troubling revelations regarding KEMSA's land holdings. The agency's financial statements list land valued at Sh158 million, but ownership documents were found to be missing.
Cheruyot, the acting legal director, struggled to provide answers on the matter, prompting Othaya MP Wambugu Wainaina to demand that KEMSA present title deeds and land valuation reports in the next session.
The committee's chairman issued a stern warning to KEMSA's leadership.
"This committee will not tolerate misuse of public funds," he said.
The MP noted the urgency of resolving the financial and operational issues, signalling that the inquiry would continue until KEMSA provides clear and satisfactory answers.
Reader comments
Follow Us and Stay Connected!
We'd love for you to join our community and stay updated with our latest stories and updates. Follow us on our social media channels and be part of the conversation!
Let's stay connected and keep the dialogue going!
Latest News For You
