Kemsa in push to have counties clear Sh2.7bn pending bills

The Kenya Medical Supplies Authority has appealed to the county governments to clear their outstanding debts and ease the burden placed on the authority.

The national drug supplier has disclosed that the counties owe the authority more than Sh2.7 billion in supplies, even though the debt has reduced from the Sh3.9 billion that was being owed previously.

“Our debt status keeps going down because we are focusing a lot of effort in collecting. What we quoted last week is that we have an Sh2.7 billion outstanding debt but the counties are working really hard to pay,” the CEO Terry Ramadhani said on Monday.

Counties that have cleared their KEMSA outstanding dues include Kilifi, Nakuru, Laikipia, Nyeri, Meru, West Pokot, Turkana, Kisii and Makueni.

The CEO spoke during the flag-off of essential medicines worth more than Sh37.6 million to Makueni county.

Makueni becomes the first of the 47 Counties to receive its quarter-four health products and technologies order recently placed with KEMSA.

In the current order placed by Makueni, 240 rural health facilities, and 13 hospitals spread across the county’s six sub-Counties, will receive their supplies from tomorrow morning to boost primary and secondary healthcare goals.

The current order comprises oncology, renal, surgical and related items, including laboratory, radiology, dental and Linen items.

“They are working collaboratively with us and we will continue the engagements so that they prioritize paying our debts because I know they have many commitments,” the CEO noted.

The Kenya Medical Supplies Authority has put in place strategies to collect more than Sh2.7 billion owed by counties in a renewed effort to ease the debt burden placed on the authority.

The huge debt owed by county governments has continued to put the national drugs agency in a fix, hampering service delivery and the authority’s efficiency.

The agency has prioritized the collection of the more than Sh2.7 billion owed by county governments as part of a stakeholder engagement focused credit management strategy.

Under the new KEMSA Credit management strategy, the authority has set a target to collect at least Sh500 million in outstanding dues from county governments to boost its service delivery capacity.

Ramadhani said the new collection strategy follows a recent restructuring and separation of the authority’s sales and credit management functions previously intertwined.

The enhancement of the credit management functions under an independent department Ramadhani said is also geared at ensuring the financial sustainability of the KEMSA revolving fund.

“We have undertaken structural changes that allow for a more efficient credit management process with our stakeholders at the core. The recently adopted credit management strategy is bearing fruit,” Ramadhani said on Friday.

“The speedy settlement of pending bills by the counties will in turn help accelerate the payment of KEMSA suppliers who are currently owed Sh2 billion in overdue accounts.”

The authority has also stepped up deliveries to the counties with increased credit sales collections.

As of mid-April this year, KEMSA successfully dispatched Sh9.73billion worth of essential medicines and medical supplies and National Health Strategic Programs (NHSP) supplies to 47 Counties.

More than 32,000 EMMS and NSPHP supplies were dispatched to more than 7,600 health facilities countrywide.

Ramadhani took over from acting CEO John Kabuchi last month. Kabuchi had taken over from Jonah Manjari in an acting capacity on December 18.

“The reforms that are happening here(Kemsa) and NHIF  and other places in the health sector are going to make the dream of UHC a reality,” Makueni governor Kivutha Kibwana said.

Manjari was kicked out of office in a series of radical changes at the authority after being marred by procurement scandals that saw the entire staff send home in early November and their positions declared redundant by the Kemsa board chaired by Mary Mwadime.