News

Kemsa sends debt collectors to recover Sh2.8b from counties

Tuesday, March 3rd, 2020 00:00 | By
KEMSA Chief Executive Officer Jonah Manjari

John Otini

PENDING BILLS:  The Kenya Medical Supplies Authority (Kemsa) has sent debt collectors to counties to claim the Sh2.8 billion owed by devolved units.

Nairobi, Kisumu and Homa Bay top the list with the highest debts to the agency.

The debt increased by Sh500 million compared to the same period last year. 

“We hope that the Council of Governors will help us get the money some of which was due many years back,” said Kemsa chief executive Jonah Manjari.

Manjari expressed concern that counties are not prioritising payment for drugs in their budgets despite being given funding for health by the central government.

Enough drugs

However, Kemsa affirmed that the country has enough drugs despite the Covid-19 outbreak. 

“There may not be any shortage of drugs in the country because most of the medicaments we supply to hospitals are locally manufactured,” said Manjari.

Kenya imports most of her drugs from India and China. However, India depends on raw materials from China to manufacture drugs. 

Kemsa’s total rolling stock for drugs is about Sh13.8 billion meaning that 20 per cent of the agency’s money is in the hands opf county governments and there is no clear timeline on when they will be paid.

Kemsa communications director Eliud Muriithi said the national government will release  money for drugs under the Universal Health Coverage pillar directly to the agency to cut out payment defaults.

In January, data from Kemsa showed that out of the Sh2.8 billion that seven counties owed the agency, Nairobi topped the list with a pending bill of Sh353 million.

The county last month paid Kemsa Sh166.9 million, being part of the debt owed, promising to clear the balance before the end of the current financial year.

Kisumu county owes the agency Sh700 million.

Counties have attributed their non-payment to late disbursements of funds by Treasury which has crippled county operations including servicing of their debts.

More on News


ADVERTISEMENT