• Only Wajir does not owe Kemsa.
• Kemsa has sent several reminders, engaged the county management, and blocked accounts of some counties in a bid to recover the funds.
Image: EZEKIEL AMING'A
The Kenya Medical Supplies Authority wants the National Treasury to deduct funds directly from the bank accounts of county governments in a bid to recover Sh3 billion they owe.
Kemsa CEO Andrew Mulwa has told the Senate Health Committee that the authority has written to the Treasury to recover the funds.
Mulwa appeared before the panel chaired by Uasin Gishu Senator Jackson Mandago at Parliament Buildings on Thursday.
The development comes after it emerged nearly all the counties owe the agency more than Sh3.03 billion.
Only Wajir does not owe Kemsa.
“We have written to the Treasury so that as they disburse cash to counties, they give us ours directly. It is part of putting pressure on the counties to pay us,” Mulwa said.
The move, which is the latest in many interventions being employed by the agency to recover the money, could trigger uproar from the devolved units.
Currently, the Treasury releases cash to individual revenue fund accounts of the county governments held at Central Bank.
The counties can only access the funds after requisition and, upon, approval by the Office of the Controller of Budget.
Kemsa has sent several reminders, engaged the county management, and blocked accounts of some counties in a bid to recover the funds.
“Kemsa has embarked on aggressive debt collection strategies to enhance liquidity and ensure the continuous supply of Health Products and Technologies,” Mulwa said.
He said Kemsa faces serious cash flow challenges due to the huge debt owed by the counties and other state agencies.
“Kemsa currently faces serious critical challenges that impede its ability to fulfil its mandate. These challenges include a declining revenue capital base,” Mulwa said.
Besides the counties, Kemsa is also owed Sh3.83 billion by other entities.
They include national government facilities, especially level 5 and 6 hospitals, development partners and the Ministry of Health.
“We confirm that Kemsa’s debt owed by other entities as of May 8, 2024, is Sh3.83 billion,” the CEO said.
Development partners owe Kemsa Sh1.21 billion, with the Ministry of Health yet to pay the agency Sh1.48 billion.
According to Mulwa, some counties have owed Kemsa for more than two years, with seven ‘notorious’ counties completely cutting links with the authority.
They are Nairobi, Homa Bay, Taita Taveta, Makueni, Kakamega, Trans Nzoia and Kisumu.
“These counties no longer buy drugs from us. Nairobi, for instance, last procured from us in January 2023,” Mulwa said.
The current law mandates public entities, including counties, to strictly procure their health commodities from Kemsa.
According to the submissions by the CEO, Kilifi, Nairobi, Machakos, Kitui and Tharaka Nithi owe the highest amount.
“We have counties with accumulated debts beyond 730 days. That is more than two years. For example, Homa Bay and Nakuru,” Mulwa said.
Kilifi owes Sh276.62 million, Nairobi Sh243.79 million, Machakos Sh117.41 million, while Kitui and Tharaka Nithi have yet to pay Sh116.37 million and Sh150.27 million, respectively.
Other counties with huge debts are Homa Bay Sh104.81 million, Vihiga Sh94.42 million, Meru Sh85.34 million, Mandera Sh82.93 million and Garissa Sh82.73 million.
Counties that owe the agency the least amount are Kisumu Sh328,008, Makueni Sh74,879, Kiambu Sh2.06 million, Kericho Sh6.63 million, Mombasa Sh7.31 million.