From MES to NESP: Mystery of the multi-billion medical equipment leasing deal by MoH Part One
Buoyed as the then Universal Health Coverage (UHC) national healing scheme to the ailing national healthcare infrastructure, in 2015, the Managed Equipment Services (MES) programme was mooted in what was supposed to be a seven years’ deal at an initial cost of Sh39billion, but until its termination nine years later in July 2023, the cost had parachuted to Sh63billion.
Successively, upon scrapping of the MES programme, MoH, in consensus with the Council of Governors (CoG) mid last year, MoH rebranded MES to National Equipment Service Project (NESP) and fully transition under the management of the national government informing governors’ pulling out from the arrangement.
In what may point to a probable false start for NESP, just like MES project worth tens of shillings of billions that was numerously shrouded in and marred by financial and contractual controversies, tendering and onboarding of medical equipment suppliers under NESP remains opaque.
This comes at a time the impeached former Deputy President Rigathi Gachagua alleged that the medical equipment lease deal has since been awarded to a single provider.
“…There is too much corruption Mr. President. Situations where Medical equipment that was being supplied by Kenyans to the Ministry of Health now has been given to one single Asian.” Gachagua said on October 20, 2024, during a televised media address upon being discharged from Karen Hospital in Nairobi.
However, before going to broadcast, efforts to reach Health Cabinet Secretary Dr. Deborah Mlongo Barasa through mail and short text messages for comment on the matter were not fruitful.
In Part One of a Three Part Series by The Informer Media Group , we delve into defunct MES project that has since transitioned to NESP signed between the national government and the county governments in a new leasing deal clouded by secrecy with shadowy contractors whose firms have been kept away from the public knowledge.
The pullout by governors came days after the National Treasury allocated more than Sh9 billion for the project in the 2023/24 budget.
Inception of MES
In February 2015, the Ministry of Health entered into a deal with global companies for supply of medical equipment to two hospitals in each of the 47 counties at Sh39billion.
The ministry awarded leasing agreements to international firms through local contractors which supplied and serviced specialised medical equipment until July 2023 when the contracted was scrapped.
The contracts ended in December 2022 but an extension of a further six months was granted to facilitated medical vendors ensure full rollover of health services.
The firms included General Electric from the US, Philips from the Netherlands, Bellco SGL from Italy, Esteem from India, Mindray Biomedical of China and Symex Europe GMBH from Germany.
Under the lease scheme, Ministry of Health would equip at least two hospitals in every county and the equipment would be leased for seven years through a conditional grant that would see each county pay the ministry deduct Sh95million annually from each of 47 counties for leasing of the equipment.
Initial contracts
The project that was approved by the Health Executives and Finance county executives and had been divided into seven lots including Lot 1: Implemented by Shenzhen Mindray Bio-Medical Electronics Company Ltd involving theatres in 96 hospitals, and Lot 2: Implemented Esteem Industries involving Central Sterilisation Supply Department (CSSD) in the same number of hospitals.
Others are Lot 5: Implemented by Bellco S.R.L involving Dialysis Centres in 49 hospitals, Lot 6: Implemented by Phillips Medical Systems Nederland B.V involving intensive care units (ICU) in 11 hospitals and Lot 7, Implemented by GE East Africa Services Ltd involving Radiology Diagnostics in 98 hospitals.
The medical vendors were to provide and oversee installation, maintenance, replacement, and disposal including training and reporting throughout the contract period.
In our Part Two and Part Three series, we give you a blow by blow account of new controversial medical equipment leasing deal extrapolated from the initial seven lots to the current 23 lots.
