Taxpayers to incur Sh1.5b loss in Covid-19 related stock

The majority of the losses include expired stock, those which were not sellable and short shelf life stock.

In Summary

• According to documents tabled in Parliament, expired stock amounts to Sh171.9 million of the stock, Sh120.6 million were not sellable while a record Sh1.2 billion have short shelf life and will expire in six months time.

• Kutuny raised fears of selling the viable stock especially in the light of government directive that lifted some restrictions including wearing of masks.

Kemsa depot in Nairobi's Industrial Area
Kemsa depot in Nairobi's Industrial Area
Image: MAGDALINE SAYA

Taxpayers are staring at a Sh1.5 billion loss in Covid-19 related stock being held at the Kenya Medical Supplies Authority stores.

Kemsa acting CEO John Kabuchi on Tuesday told the National Assembly's Health Committee that the majority of the losses include expired stock, those which were not sellable and short shelf life stock.

According to documents tabled in Parliament, expired stock amounts to Sh171.9 million of the stock, Sh120.6 million were not sellable while a record Sh1.2 billion have a short shelf life and will expire in six months.

The CEO also informed the session chaired by Cherengany MP Joshua Kutuny that Kemsa is still holding a viable stock worth Sh2.6 billion at their stores which they intend to sell by the end of the year.

"From the viable stock, we project to sell stock worth Sh800 million by December 2022," Kabuchi said.

Kutuny raised fears of selling the viable stock, especially in the light of a government directive that lifted some restrictions, including the wearing of masks.

"Do you think the action of the Cabinet Secretary to lift some of the restrictions will put you in jeopardy?" posed the Cherengany lawmaker.

He assured the committee the Authority is doing all it can to sell the remaining face masks at market prices.