The National Assembly has approved an allocation of Ksh 2 billion to the Kenya Medical Supplies Authority (KEMSA) as part of the Supplementary Budget to boost KEMSA’s Order Fill Rate from the current 60 percent to 80 percent.
The allocation aligns with the bottom-up economic transformation agenda (BETA) made by President William Ruto to ensure KEMSA can effectively provide essential medical supplies and successfully roll out Universal Health Coverage.
Addressing a one-day engagement forum attended by over 200 delegates from all 47 counties, themed “Fostering Collaborative and Strategic Partnerships,” KEMSA Board Chair Irungu Nyakera, emphasised that the allocated funds would be strictly earmarked for the procurement of Health Products and Technologies to meet the growing demand.
“This money is not going for any construction or development; it will be used specifically to pay our suppliers so that we ensure our order fill rate gets to where it is supposed to be,” said the Chair.
During the forum, Nyakera said outstanding debts, currently totalling Ksh 2.6 billion pose a challenge in increasing its medical stocks due to the authority’s inability to settle. He noted that counties owe KEMSA Ksh 2.8 billion and if collected, these funds would significantly contribute to the Authority’s restocking efforts.
Dr. Andrew Mulwa, Acting Chief Executive Officer of KEMSA, said that collective effort is paramount for achieving the highest attainable standards of health, as guaranteed by the Constitution.
“We need to have an engagement so that everyone understands that KEMSA runs a revolving fund. Whether you pay all your debt today or pay all your debt, you still have to make an order followed by a delivery, meaning that it is a cycle,” said Mulwa.
He urged counties to support KEMSA in developing a mechanism to address the debt cycle, which significantly impacts liquidity and, ultimately, the Authority’s ability to maintain adequate stocks.
Speaking on behalf of the Caucasus, Machakos County CEC for Health, Mr. Daniel Yumbya, highlighted challenges faced by counties, and attributed the outstanding debts to constrained funding for healthcare.
“If we had enough funds, we would not owe KEMSA any monies. We are able to provide health products and technologies to our facilities because of the credit facilities provided by the Authority,” said Yumbya.
