Kenya Insights

Tag: Kemsa

  • Woman Charged In KEMSA Fraud

    Woman Charged In KEMSA Fraud

    A woman posing as Raila Odinga’s personal doctor was on Monday arraigned in court and charged with forging framework contract in the name of Kenya Medical Supplies Authority (KEMSA) for the supply of long-lasting Insecticidal nets.

    Faith Mwikali Ndiwa allegedly received the money from Nigerian national Jude Olabwayo Veracruz Veracruz to finance the supply of anti-malaria nets to the Kenya Medical Supplies Authority (Kemsa).

    The accused allegedly deceived the foreigner that the contract for the supply of Insecticidal nets (LLINs) was for Mr Odinga’s son-in-law who had allegedly run out of money and wanted to be financed to complete the contract.

    The Milimani Law Court heard that Ms Mwikali used her two companies – Ashley Dylan Limited and Faizel Limited – to secure a tender number IFT NO GF ATM MAL NFM-19/20-OIT-004 to supply Kemsa with Long Lasting Insecticidal Nets (LLINs).

    The accused allegedly deceived the foreign investor that he would earn profit after paying the Sh25 million to complete part of his bargain.

    The charge claimed Veracuz would not have expended the money were it not for the said deception.

    The accused is said to have obtained the money on diverse dates between June and December 2022 in Nairobi county.

    Mwikali hiding her face when she appeared in court.
    Mwikali hiding her face when she appeared in court.

    Ms Mwikali was also charged that on March 7, 2022, at unknown place within the country with intent to defraud, forged a Framework Contract number IFT NO GF ATM MAL NFM-19/20-OIT-004 between Kemsa and Ashley Dylan Limited for the supply of Long Lasting Insecticidal Nets purporting it to be a genuine agreement under the Medical Supplies Authority.

    She is facing another charge of altering the said contract between her company and Kemsa purporting it to be a genuine agreement for the supply of Insecticidal Nets.

    Ms Mwikali is also accused of forging an amendment to the agreement to the Framework Contract between her company and Kemsa.

    The accused denied all eight counts of forgery, falsifying contract documents and obtaining money through pretenses before Milimani Law Court Chief Magistrate Susan Shitubi.

    The accused applied to be freed on bond but the prosecution counsel Naomi Wanjiru opposed the plea saying police need to put in an affidavit articulating reasons as to why bail should be declined.

  • PPEs Worth 790M Held By KEMSA Have Expired

    PPEs Worth 790M Held By KEMSA Have Expired

    Personal protective equipment worth Sh790 million held by the Kenya Medical Supplies Authority (Kemsa) at their warehouse have expired, a parliamentary committee heard Thursday.

    Kemsa acting CEO Edward Njoroge Thursday told the National Assembly Committee on Health that the expired PPE are part of the Sh5.4 billion that the agency procured but have remained at their stores to date.

    Mr Njoroge told MPs that the items expired at their stores while they were still waiting for approval from the Cabinet to dispose of them at the current market prices.

    “After getting Cabinet approval to dispose of the PPEs, we found out that items worth Sh790 million have expired. But we are assessing to see if some of the items can still be used,” said Mr Njoroge.

    A fully kitted PPE has an overall, gloves, face shield and shoe cover. Mr Njoroge said they are checking if some of the items could be salvaged and used.

    The Kemsa procured the anti-Covid consignment at a higher price owing to their high demand when Kenya first recorded positive Covid-19 cases in March 2020.

    The agency is said to have procured N95 (1860) masks at Sh1,300 a piece against the market price of Sh700. It ordered 5,000 pieces. It bought KN95 masks at Sh700 apiece against the market price of Sh450. It was supplied with 1,836,400 masks while disposable masks were bought for Sh90 a piece against the market price of Sh50

    The purchase of the PPE currently stuck at Kemsa is also a subject of an investigation by the Ethics and Anti-Corruption Commission (EACC).

    Kemsa currently holds stock worth Sh5.4 billion from the original procurements of Sh7.6 billion after selling stock worth Sh2.2 billion before the EACC stopped the sales.

    So far, the agency has paid Sh4.7 billion to suppliers while it still owes others Sh2.9 billion.

    In July, while appearing before the Public Investments Committee over the Sh7.8 billion Kemsa scandal, Health Cabinet secretary Mutahi Kagwe told MPs that the National Development Implementation and Communication Committee chaired by Interior CS Fred Matiang’i approved the release of the stock into the market.

    In August, the agency got the Cabinet memorandum approving the sale of the equipment at the current market rates, a move that will see taxpayers lose Sh2.3 billion.

    Mr Njoroge confirmed to the lawmakers that they have already started selling the items and have already sold out equipment worth Sh180 million.

    He added that they have also engaged 35 counties that have ordered the items while 12 are still reluctant to buy the equipment from them.

    “The board has met severally over this matter and gave the management permission to dispose of the items to willing customers,” he said.

    “We have been able to engage counties and referral hospitals but they are saying our prices are very high and that we should march their prices for them to buy from us.”

    A report by PIC chaired by Mvita MP Abdulswamad Nassir in a report tabled before the house last month recommended that suppliers who benefited from inflated prices of face masks should refund excess payment within a month. The MPs are yet to debate the report.