KUTRRH officials grilled over Sh1.29bn budget overrun, obsolete PPEs and soaring debts
The House committee grilled hospital officials on issues including obsolete stock disposal, high receivables, and a significant budget over-expenditure.
The National Assembly’s Public Investments Committee is intensely scrutinising the Kenyatta University Teaching, Referral and Research Hospital (KUTRRH) over financial and operational challenges flagged in the Auditor-General’s reports for the 2022/2023 and 2023/2024 financial years.
The Committee, led by Navakholo MP Emanuel Wangwe, grilled hospital officials on issues including the disposal of obsolete stock, high receivables, and a significant budget overexpenditure.
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The Auditor-General’s report flagged Sh15.1 million worth of obsolete non-pharmaceutical items, mostly Personal Protective Equipment (PPEs) donated during the COVID-19 pandemic.
“These PPEs were received in kind from partners during the pandemic. However, after the pandemic subsided, they were no longer usable and were incinerated,” Acting CEO Dr Zainab Gura said.
No disposal documentation
However, the Committee questioned the lack of official disposal documentation, with Wangwe asking, “Do you have a certificate from the National Environment Management Authority (NEMA) to support the disposal?”
Committee members stressed the importance of proper disposal procedures for potentially hazardous materials. Ndhiwa MP Martin Peters Owino asked, “Is there a policy guiding this?”
A hospital supply chain manager said the disposal was done using NEMA-certified equipment internally, but the Committee insisted on the need for a formal certificate from NEMA.
The hospital’s receivables, totalling Sh1.29 billion, were also examined. Of this, Sh123.5 million is owed by individual patients, with Sh61.6 million already considered doubtful debts.
Dr Gura noted that many patients who have recovered still owe money, but payment agreements are made using collateral to free up hospital beds.
“We also make provisions for bad debts and write them off if recovery is deemed impossible,” she added.
The hospital now has a Standard Operating Procedure for debt management and conducts socio-economic assessments at admission to identify high-risk patients.
Budget overrun
Another major concern is the hospital’s budget overrun of Sh1.29 billion, or 21 per cent over the approved Sh6.13 billion.
The excess spending, mainly on employee compensation and goods, lacked formal re-approval.
Dr Gura blamed the overruns on increased patient numbers and unfunded statutory deductions.
“The hospital had requested an allocation of Sh7.28 billion, but only received Sh6.13 billion,” she said, urging for full funding, especially for personnel costs.
She also revealed a current personnel funding gap of Sh1.5 billion in the 2024/2025 budget.
Vice-Chairperson Caleb Amisi called for improved hospital management to boost service quality, saying, “If we get our health system right, we can reduce the burden on Kenyans who travel abroad for treatment and even attract foreign patients.”
MP Jackson Kosgei also criticised the poor state of public hospitals, which forces many to seek care outside the country.
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