The Ministry of Health is negotiating with governors to pay the Kenya Medical Supplies Authority Sh2.3 billion owed as of April 11.
Of this amount, Sh1.4 billion is overdue by more than 60 days.
The debt is cumulative and nearly all counties have not paid for medicines supplied more than two months ago.
Some counties have not paid for more than three years.
The devolved units have an agreement with Kemsa to pay in 45 days after the delivery of medical supplies.
The supplier recently suspended accounts of Narok, Murang’a and Nairobi counties for defaulting. Kwale, Kericho, Kilifi and Makueni have not ordered drugs in the past three months.
"We are going to talk with governors on how they can clear the debt. But dawa ya deni ni malipo (the solution to debts is paying them)," Health CS Sicily Kariuki said this week when she visited drug manufacturer Universal Pharmaceuticals.
"If Kemsa already supplied them with medicines, then they have to pay. But we realise this can't be done in one day. That's why we will have the talks," she said.
Nairobi tops the league of defaulters and by April 11 was in arrears of Sh284 million.
Others are Makueni (Sh163 million), Homa Bay (Sh138 million), Narok (Sh105 million), Kitui (Sh94 million), Kiambu (Sh95 million) and Turkana (Sh96 million).
Kemsa CEO Jonah Manjari said they had suspended accounts of some defaulters.
"We are free to open discussions on the way forward so Kenyans can access quality and affordable products," Manjari said.
Kemsa and churches-owned Mission for Essential Drugs and Supplies (Meds) are the main suppliers of medicines to government and counties.
Meds is also struggling with debts from counties. Early this year, Justice Kanyi Kimondo ordered Murang'a county government to pay Meds Sh28 million and interest for drugs supplied in 2015 and 2016.
The Kemsa boss advised counties to open special-purpose accounts for drugs.
"Our commitment is to fulfil the Universal Health Coverage. If counties do not procure drugs from the right suppliers, then there is a risk," he said.
In March, Taita Taveta admitted it was unable to procure drugs from Kemsa or Meds because of debts.
Health executive Daniel Makoko said the county owed Kemsa Sh52 million, Lancet Kenya Sh48 million and Meds Sh16.9 million.
“The debts have resulted in our county being blacklisted as credit unworthy and therefore we are unable to source drugs on credit,” Makoko told the county assembly.
The statement acknowledged the shortage of drugs in public health facilities.
(Edited by R.Wamochie)
