The national medical drugs supply authority, the Kenya Medical Supplies Authority (Kemsa), a body grappling to shed monumental graft history is once again on the spotlight over sale of expired drugs and overpayment of millions of money to suppliers.
Already, the National Assembly Public Investments Committee on Social Services, Administration and Agriculture chaired by by Navakholo Member of Parliament (MP) Emmanuel Wangwe has launched probe into the matter.
This is the latest major financial mismanagement scam to be uncovered at Kemsa.
The Auditor General Nancy Gathungu’s report for the Financial Years 2019-2022 shows the authority made Sh1.8 billion in sales in FY 2019-2020, but also sold expired drugs worth Sh120 million.
Further, the committee learnt that Kemsa overpaid Sh19.3 million to Timeless Courier Services through unclear circumstances.
While appearing before the Wangwe led committee, Kemsa leadership led by Chief Excutive Officer (CEO) Waqo Ejersa were at pains to explain the discrepancy pointing to a major accountability and transparency shortfall of the taxpayers’ money.
He was accompanied by Kemsa Finance Director Pauline Jepkemoi and acting Legal Director Evans Cheruyot.
Lawmakers focused on procurement issues, drug wastage, and the overpayment of millions of shillings to external contractors.
Maragua MP Mary Wamaua questioned how the agency could allow such a significant overpayment without proper oversight.
“How did KEMSA overpay Sh19 million without due diligence? Wamaua posed.
Despite the overpayment, Timeless Courier Services is now claiming an unpaid balance of Sh14.9 million as debt.
This raised further concerns about the agency’s financial controls and procurement procedures.
The issue of financial mismanagement was compounded by KEMSA’s shifting from a centralised “Push” supply model to a decentralised “Pull” system, where counties now place specific orders.
Ejersa explained that this transition led to some commodities having low demand, resulting in expiries.
However, this practice has continued to raise questions, despite KEMSA’s efforts to donate near-expiry drugs and implement a “first expiry, first out” policy.
Wamaua expressed concern about the risk of corruption in the donation process.
“When you donate drugs, how do you prevent counties from falsely claiming purchases? This loophole could fuel corruption.” Wamaua said.
The committee is now calling for greater transparency and oversight in KEMSA’s distribution system.
There were further troubling revelations regarding KEMSA’s land holdings. The agency’s financial statements list land valued at Sh158 million, but ownership documents were found to be missing.
Cheruyot, the acting Legal Director, struggled to provide answers on the matter, prompting Othaya MP Wambugu Wainaina to demand that Kemsa present title deeds and land valuation reports in the next session.
The committee’s chairman issued a stern warning to Kemsa’s leadership.
“This committee will not tolerate misuse of public funds.” Wambugu noted..
The MP noted the urgency of resolving the financial and operational issues, signalling that the inquiry would continue until KEMSA provides clear and satisfactory answers.
