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December 15, 2018

MPs approve Sh1.3bn payout to KU hospital

Kenyatta university main gate. /Monicah Mwangi
Kenyatta university main gate. /Monicah Mwangi

MPs have approved a report that will ensure the National Treasury disburses Sh1.3 billion to the Kenyatta University Teaching and Referral Hospital for personnel and capacity building.

The National Assembly’s Health committee, in its report on the hospital’s project, recommended for the immediate release of Sh1 billion for running of the facility and Sh656.6 million for the dry run budget.

The committee chaired by Murang’a woman representative Sabina Chege had recommended the allocation be factored in the next Supplementary Budget for National Assembly’s ratification.

“This would trigger release of the loan Sh1.37 billion loan. That is part of the loan that has actually not been released because there is no personnel to be trained,” the report read.

Read: Vice Chancellor denies plan to turn KU hospital into state corporation

The project was financed through a concessional loan agreement between the Kenyan government and the Exim Bank of China at a tune of Sh8.7 billion. So far, Sh1.37 billion of the total loan remains outstanding.

Kenyatta University has already appointed a project team led by Prof Okello Agina, the acting CEO of the hospital, in readiness for their first patients. Before his appointment, Prof Agina was the Dean of the School of Medicine at the university.

Seme MP James Nyikal said the Kenyatta University is geared towards easing pressure on Kenyatta National Hospital (KNH) by matching services offered and other large private hospitals in the country.

He said the project is designed to be a teaching and referral hospital with a bed capacity of 600.

“The Committee is actually of the view that Kenyatta University should be supported as much as possible. The ministries of Health and Education should be actively involved in these discussions and take a leading role in matters of health policy and teaching respectively,” Nyikal said.

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