• Danish Ambassador Mette Knudsen says she is unable to justify to his government why the grant is lying idle, yet it was believed Covid-19 was an emergency in Kenya.
• Kenya last week took a Sh79.3 billion loan from the International Monetary Fund to fight Covid-19.
Image: CHARLES MGHENYI
Kenya risks losing Sh500 million grant to fight Covid-19 after the Treasury failed to formally accept the funds from donors.
Most of the money, offered as early as April 16, was expected to support dispensaries and health centres, which are now cash-strapped and lack medicines and protective gear.
A smaller amount was to support water provision in slums in Nairobi during the pandemic.
However, the funds are still with the Embassy of Denmark in Nairobi because the Treasury has failed - despite many reminders - to send an acceptance letter and stipulate how the funds would be utilised.
Danish Ambassador Mette Knudsen said she is unable to justify to his government why the funds are lying idle, yet it was believed Covid-19 was an emergency in Kenya.
In a letter to Treasury Cabinet Secretary Ukur Yatani, she said the money could now be sent to neighbouring countries that are needier.
"Regrettably, as the needs for immediate assistance are only increasing, both in Kenya and in the region, the Danish embassy cannot justify further delays in the use of these grant funds," she said in the letter delivered to the Treasury early this week.
Separately, Kenya last week took a Sh79.3 billion loan from the International Monetary Fund to fight Covid-19.
The Danish embassy had secured a Sh350 million grant from the Danish Global Covid-19 Fund to support dispensaries and health centres in Kenya.
The Treasury was expected to receive and send the money to counties through the counties' Special Purpose Account for health funds.
Another Sh150 million was meant to support emergency water, sanitation and hygiene response in Nairobi's slums.
This amount should be sent to the Water Sector Trust Fund.
The Danish envoy said the Treasury was informed of the two grants on April 16 and April 21.
The Treasury was simply required to send an acceptance letter stating whether the Kenyan government accepts the assistance, and in the same letter request the embassy to disburse the money.
"To this date, despite many contacts with the Danish embassy and the National Treasury requesting government's response, this has still not been received," the ambassador said, in a letter seen by the Star.
Yesterday, an official at the Treasury confirmed they received letters announcing the grants.
However, CS Yatani failed to respond to multiple inquiries from the Star.
Council of Governors chairman Wycliffe Oparanya said the donor and the county governments are frustrated.
"We have noted the frustration that the development partner is facing from the National Treasury that has hampered expeditious processing of the money meant for an emergency response to the current crisis," he said.
He said the Treasury has been unresponsive despite many inquiries by the Danish embassy.
"We urge the National Treasury to remove the bottlenecks and give guidelines on how these funds will be absorbed by county governments," Oparanya said.
The CoG chair said counties don't have funds to fight Covid-19 because the Controller of Budget has imposed restrictions on the disbursement of the equitable share revenue.
"As of today, a total of Sh85.6 billion which is 27 per cent of the total allocation, is yet to be disbursed to the counties," he said.
Denmark, through the Danish International Development Agency (Danida), is a key supporter of healthcare in the counties.
Between 2016 and 2020, Danida has spent Sh4 billion to support dispensaries and health centres, and strengthening health systems in the county and national government.
The funds also supported maternal health and sexual and reproductive health and rights.
Edited by A.N