Counties owe Kemsa Sh2.8 billion

Counties owe the Kenya Medical Supplies Authority Sh2.8 billion, the agency’s acting chief executive Fredrick Wanyonyi has said.

Nairobi has the highest debt, amounting to Sh285 million as of Friday.

However, governors blame the National Treasury for the huge debts, accusing it of delaying disbursements to counties.

Council of Governors Health chairman Mohammed Kuti said counties had not received the December, January and February allocations.

PENDING BILLS

The Isiolo governor said counties were now scrounging around to meet their obligations, especially in health.

“The money we received in February is the payment we should have got in November 2017. Some counties have not paid salaries for two months. It is not just Kemsa that is being owed. We have several pending bills,” he added.

Mr Kuti said the law stipulated that money should be disbursed to counties by the 15th day of the month.

PERSUADE

“Makueni is the only county servicing its debts,” Mr Wanyonyi said.

He urged the government to address the problem, adding that the authority was in a financial crisis.

“We may not be able to support counties due to the debts. The Senate should intervene. We have tried to persuade governors to pay the debts because it might affect our business,” Mr Wanyonyi said.

NOTORIOUS

He said the debts have been accrued from the last financial year, adding that it could jeorpadise President Uhuru Kenyatta’s agenda on universal healthcare coverage.

Mr Wanyonyi, who was addressing the Senate Health Committee in Mombasa,  said some counties were notorious in delaying payment.

“We are revising our sell agreement with counties to provide timelines in payments. We have engaged Health Cabinet Secretary Sicily Kariuki who has talked to the Treasury. Four counties owe us a lot of money,” he said.

SURPRISED

Committee chairman Michael Mbito said the panel would find a solution to the debt crisis in the coming two weeks.

“It has just been brought to our attention and we are surprised because it is definitely affecting services. Kemsa should bring up the matter formally to our committee to discuss and talk to governors," Dr Mbito said.

"We want to find out why governors are not servicing debts.”

EXPIRED

The lawmakers also asked Mr Wanyonyi to address the matter of substandard drugs in the market and reports that the authority stored expired drugs.