Kenya likely to lose Ksh.1.5B in COVID-19 related stock held at KEMSA stores

Kenya likely to lose Ksh.1.5B in COVID-19 related stock held at KEMSA stores

  • KEMSA acting CEO John Kabuchi 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.
  • The revelations angered members of the committee who had already investigated and gave recommendations that the stocks should be sold last year.

The country is likely to lose Sh1.5 billion in COVID-19 related stock being held at the Kenya Medical Supplies Authority (Kemsa) stores.

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

The revelations angered members of the committee who had already investigated and made recommendations that the stocks should be sold last year.

“Committee did it's on investigations and made recommendations that needed to take place immediately, the CEO then was supposed CEO was supposed to be investigated, with a lot of respect to EACC, this was enough to take this man to court, but because of back and forth Kenyans is going to lose close to 2B” said the committee chair Joshua Kuttuny.

Kabuchi however said KEMSA management had to follow the law in disposing of the stock as doing otherwise would have landed them in trouble. 

“We sort permission from gov’t to disposal the stock which took time, and after receiving permission, we have our sales team engaging counties because we are selling at market price we hope it will be sold” Kabuchis said.

Kutuny however raised fears that it will be difficult to sale the viable stock especially in the light of government directive that lifted some restrictions including 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.

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.

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

The committee now wants the office of Public prosecutions and the Ethics and Anti-corruption commissions to take action against those involved in creating the loss.

Tags:

KEMSA. covid-19

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