Kenya loses 70B contract with the US over KEMSA Scandal

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The government’s medical supply agency, KEMSA has lost a five-year Sh70B contract to procure, warehouse and distribute malaria, tuberculosis, and HIV drugs in the country, on behalf of the American government. This has been as a result of the recent KEMSA Scandal in which the country lost Sh 7B donor funds meant to mitigate the Covid-19 pandemic in the country.

The Sh70 billion five-year contract expired and was ready for a full renewal after being extended a few times on a month to month basis from December last year.

”As discussed on the call, after reviewing evidence and credible allegations regarding fraud and corruption identified by USAID’s office of the Inspector General, and in light of the Biden administration’s focus on combating corruption, the US government has determined that it is no longer tenable to continue working through Kemsa,” reads a letter from Mr Eric Kneedler, the chargé d’affaires at the US Embassy in Kenya.

Kenya has been a major beneficiary of the USAID and Global Fund donations, for years depending on their input and donation to run critical areas in the country’s health sector. The Kenyan government has received a total of Sh 69B from the USAID in the last five years, between 2015 and 2020.

On the other hand , Kenya being on the high impact list of the Global Fund, has signed an active grant of Sh40.7B with the body, for the period between January 2018 and June 2021.

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