Dispute looms over Sh5.2b Treasury medical kits cash
National Treasury has set aside Sh5.2 billion for the controversial Medical Equipment Leasing Scheme amid concerns the project was not initiated in a transparent manner.
The project was previously supposed to expire this year but the funds have been allocated to cater for up to mid-next year.
Most lawmakers have said the deal did not come to fruition, leaving many patients without proper care because there was no one to operate the equipment.
There were also challenges in replenishing supplies that were required for various functions at target hospitals.
Loss of funds
“To decide on the fate of the project after the expiry of the contract, a committee was set up to look into the issue and each county will give a response to advise the Managed Equipment Services (MES) team on whether to continue or otherwise,” according to Parliament’s Budget Policy Statement.
Lack of hospitals in certain counties meant they could not have benefited from the project, with lack of water and personnel compounding the problems, meaning payment for the equipment was a loss of funds.
Parliament is waiting for a report by a team commissioned to look into the matter and advise on whether it should be continued.
The government has continued to allocate funds to the project since then with Sh6.2 billion being allocated the previous financial year.
Institute of Economic Affairs (IEA) has warned that the secrecy surrounding the multi-billion-shilling project and unexplained cost variations are signs that taxpayers may not get value for money.
“Lack of transparency in the entire project with regards to terms and conditions of the contract and poor regulation increases financial and corruption risks,” said Kwame Owino, CEO at Institute of Economic Affairs (IEA).
The Sh58 billion project was mired in controversy as MPs at the time called it a criminal enterprise that shipped in overpriced equipment some of which could have been made locally.
Kenya signed contracts with five private firms in 2015 to lease specialised equipment like CT scanners to the country’s 47 County governments, who manage most health services, in a deal praised by the World Bank at the time for its ability to be replicated elsewhere on the continent.
Replenishing supplies
The firms included China’s Shenzhen Mindray, India’s Esteem Industries, General Electric and Philips. But lawmakers said the deal left many patients, some suffering from serious diseases like cancer, without proper care because there was no one to operate the equipment or problems replenishing supplies needed to make it function.
The deal which was to run to 2021 entailed leasing theatre, renal, ICU and radiology equipment to counties. Counties will pay Sh131.9 million in the year to June 2020 for the leases.
