Kemsa to withhold supplies over debt

The rolling out of a pilot health initiative is in jeopardy over an outstanding debt of Sh77.5 million.

The Kenya Medical Supplies Authority (Kemsa) has warned that it will scale down the quantities of pharmaceutical and non-pharmaceuticals to be delivered to the county during the next quarter if the debt is not settled.

Kemsa Western Regional Sales and Marketing Executive Kenneth Bukachi said that if the money was not paid by April 10, they would target the county’s universal health coverage (UHC) allocation of Sh127.5 million.

Dr Bukachi said that after the national government disbursed funds for the UHC programme, the agency would first pay itself what it was owed and then supply commodities worth Sh50 million.

“We have been writing demand letters quarterly, but received no response from the county officials,” said Bukachi.

Health Executive Rosemary Obara said the debt had accumulated over the years and that it would be repaid.

“We are working around the clock with the Finance department to ensure that the debt is cleared and it does not affect UHC implementation,” Ms Obara said.

She accused Kemsa of failing to supply commodities such as lab reagents and drugs for oncology and renal patients.

But Bukachi said the outstanding debt had affected its logistics operations, adding that despite the hurdles Kemsa had supplied commodities worth Sh158 million in the first quarter.

“Any business cannot thrive with such a huge debt. The delays in repayment led to huge losses because we supply promptly. They ought to pay otherwise we will collapse,” he said.

President Uhuru Kenyatta launched the UHC pilot programme in Kisumu in December last year. Nyeri, Isiolo and Machakos counties are also part of the pilot phase that will target over three million Kenyans.

Its success will determine roll-out across the other 43 counties.