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Medical suppliers blames stockouts on jam at Nairobi depot

By Standard Reporter | Published Thu, August 23rd 2018 at 00:00, Updated August 25th 2018 at 13:23 GMT +3

NAIROBI, KENYA: The directive by the government to process imports at the inland container depot in Nairobi is causing pain for medical suppliers who are experiencing stock-outs due to delays in clearing consignments.

Mission for Essential Drugs and Supplies (MEDS), a regional drugs supplier, says this comes at a time when demand for drugs and medical supplies is growing steadily as the government implements universal healthcare coverage programme through the National Hospital Insurance Fund (NHIF).

Dr Jane Masiga from MEDS said the organisation, which supplies drugs to counties and national government as well as faith-based health facilities countrywide, has experienced stock outs affecting 201 items over the past seven months, costing it up to Sh114 million in lost sales.

“Due to the congestion at the Nairobi inland depot, consignments are taking weeks to clear and that affects our stocking since we are not able to replenish in good time,” she said during the annual MEDS suppliers conference held at its head offices on Mombasa Road.

The theme of the conference was, “Partnering with Manufacturers and Suppliers of Health Products and Technologies in Promoting Universal Health Coverage’’.

Dr Masiga said the situation has also been complicated by delayed payments by health facilities under the NHIF. While NHIF, which is working to have all Kenyans covered, has become the biggest healthcare financing programme in the country, she said it had come with some challenges.

She noted that as a result of delays in reimbursements from NHIF, health facilities have in the recent past found it hard to cater for their contractual obligations of paying service providers and medicines suppliers.

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Dr Masiga said the National Health Insurance Fund (NHIF) is critical in promoting uptake of health services and realization of the Big 4 agenda of affordable health care for all.  She said NHIF enrolment had increased over the past 5 years resulting in many more patients accessing healthcare services and hence higher demand for health commodities

Dr Masiga said to mitigate the situation MEDS was negotiating with its suppliers to extend their credit period from between 30 and 60 days to 90 days to sustain supply.


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