•Kemsa says it only has received Sh59.1 million from NMS for Covid-related supplies. It says total debt is about Sh382 million.
• In May, assembly allocated Sh374m to clear debt but no confirmation documents received. NMS says there's no debt.
Image: MAGDALINE SAYA
While Nairobi faces a drugs shortage crisis, the Kenya Medical Supplies Authority revealed it has not received an order from Nairobi Metropolitan Services or City Hall for 16 months.
Kemsa distanced itself from the blame game over the empty shelves in public health facilities. It says it is owed Sh382.1 million.
NMS says there's no debt. The Assembly appropriated Sh374.9 million to clear all debts. The executive said the debts have been paid, finance committee boss Robert Mbatia said. However, confirmation documents have not been received from the executive, he said.
So where's the money?
On Wednesday night, Kemsa acting commercial director George Walukana said it only supplies medicines and other supplies to clients when orders are made.
He said, "The last Local Purchase Order for Sh196 million was issued in March 2020, by Nairobi City County and deliveries were made in April when NMS was already in office and in charge of the health department."
Kemsa said it is owed more than Sh382.1 million in pending bills for medical commodities supplied to Nairobi county health centres and hospitals.
It supplies more than 80 health centres and three hospitals.
"However, we have not received any request or Local Purchase Order from the Nairobi County Government or NMS requisitioning any supplies as of this morning," Walukana's statement said.
Kemsa said it is owed Sh196 million from last year's order in March, while Sh186.1 million has been outstanding since July 1, 2017.
The Kemsa leadership team headed by acting CEO Edward Njoroge has reached out to City Hall and NMS to seek a mutual and amicable commitment to clear the bills.
“This debt is yet to be settled, but we remain optimistic of speedy resolution of this matter,” Walukana added.
Kemsa said it remains committed to providing reliable, affordable and quality health products to clients, including Nairobi health services.
In May, the Nairobi County Assembly through a Supplementary Budget had allocated Sh374.9 million to clear the outstanding Kemsa debt.
The allocation has raised questions about where the funds were diverted if Kemsa has not received any money to clear the debt.
County assembly finance committee chairman Robert Mbatia earlier had said the executive reported that the money was paid, but confirmation documents have not been received from the executive.
NMS health services director Dr Ouma Oluga also said there are no pending bills owed to Kemsa.
Walukuna said the only money received from NMS this year was Sh59.1 million for Covid-related commodities.
He said Sh54 million was paid on May 17 this year and Sh4.9 million was received on July 15 this year.
In 2017, Kemsa stopped supplying medicine to Nairobi hospitals over a Sh285 million debt. This forced patients to buy drugs and other medical supplies from private hospitals and chemists.
It took the intervention of President Uhuru Kenyatta and then former Health CS Sicily Kariuki for Kemsa to resume supplies to the county in 2018.
Kemsa’s acting commercial director explained that county health facilities order and pay for supplies on a demand-driven model, known as the 'supermarket model'. Order placement is carried out in a Logistics Management Information System (LMIS).
“When the money is paid by the county governments, it goes to a revolving fund that facilitates the authority to sustain its supply chain," Walukana said.
"We use the revolving fund to replenish stocks once the counties pay Kemsa for supplies as per their requests,” he added.
However, it is a self-sustaining not-for-profit commercial business model, where the revolving funds facilitate the authority to sustain its supply chain.
(Edited by V. Graham)