How little known Sunview Medipro bagged Sh200billion medical equipment deal

The little known Sunview Medipro International is the new firm contracted to handle the medical equipment leasing deal under the National Equipment Service Program (NESP) by the Ministry of Health (MoH) at a cost of Sh200billion in collaboration with the Council of Governors (CoG), an arrangement that was controversially rejected by governors at its inception stage.

The pullout by governors came days after the National Treasury allocated more than Sh9billion for the project in the 2023/24 budget with, at the time, shadowy contractors whose firms were kept away from the public knowledge and scrutiny.

However, currently, Sunview Mediprol International is reportedly said to have already launched Phase 1 of a large-scale installation of advanced medical equipment across public health facilities at the national, county, and sub-county levels in Kenya that include 98 CT Scans, 400 theatres and labs across the counties.

Under the current framework, Sunview Medipro International has been contracted to deploy an initial 98 Diagnostic Imaging CT Scan Machines (2 per county), 2 Diagnostic Imaging Mammogram Machines, 400 Operating Theatres, and 400 Laboratories across the country.

Sunview Medripro will implement the project under a Fee-for-Service (FFS) model.

“Our integrated approach ensures that healthcare providers receive seamless support throughout the entire process,” Sirat Amin, the Chief Executive Officer of Sunview Medipro International was quoted saying during the flag-off ceremony at the company’s Nairobi headquarters.

Sunview will be required to deliver the equipment, install, setup and undertake comprehensive training including maintenance services.

They will also supply spare parts, consumables, and provide continuous consultation to ensure uninterrupted and high-quality healthcare delivery.

Installations are said to be underway in Jaramogi Oginga Odinga Teaching and Referral Hospital, King Fahd Lamu County Referral Hospital, Kerugoya County Referral Hospital and Wajir County Referral Hospital but independent verification were not fruitful.

According to James Kamau, Principal Supply Chain Officer at the Council of Governors, the first phase will prioritise Level 5 and key referral hospitals.

“With the FFS model in place, public health facilities can now deliver high-end medical services without heavy capital costs,” Kamau said.

“This will save counties millions in maintenance costs, which can be reallocated to hire more health workers and procure essential medical supplies.”

NESP is fully under the management of the national government saw governors protest with some saying they “had no choice” amid past revelations that counties were kept in the dark regarding details of the agreements including identity of the contractors whom were said to be seven in number.

In 2024, Senators raised concerns over the legality of multi-billion-shilling contracts signed between counties and the national government for the lease of the new medical equipment aimed at supplying medical devices to county hospitals under the National Equipment Service Project (NESP).

Also, lawmakers questioned the transparency of the process and the potential financial impact on healthcare delivery in Kenya.

While appearing before the Senate Public Accounts Committee (PAC) on December 3, 2024, Nyeri governor Mutahi Kahiga, who is the vice-chairperson of the Council of Governors (CoG) blew the lid off over the new medical equipment leasing deal under National Equipment Service Project (NESP) terming it as shadowy.

He admitted that county governments were left with little choice but to sign the contracts, despite being kept in the dark about crucial details, including the identities of the suppliers.

Kahiga described the situation as a “desperate move” due to the failure of the previous Medical Equipment Service (MES) project, which saw billions of shillings lost on faulty equipment.

He later termed the process to have been above board and lobbied to support the same.

Senate PAC chairman Moses Kajwang demanded clarity from the governors, asking how the decision to procure the medical equipment was made and under what legal framework.

“How was the decision made and under what procurement law? How sure are you that the cost of running the equipment constitutes value for money?” Kajwang posed adding that it would be difficult to defend devolution if governors allowed such opaque arrangements.

Kahiga explained that counties were left with no choice but to agree, citing financial constraints that made it impossible for them to purchase the required medical equipment.

“We had no option but to sign the deal. Counties do not have the funds to buy this equipment,” Kahiga told the committee

“We did not procure the machines, it’s the Ministry of Health that did the procurement. They even put out advertisements in the newspapers. We were not involved.” He added.

Kahiga further explained that counties were asked to select from 23 lots of equipment needed for local hospitals, but it was only after making these selections that they learned which companies would be providing the machines.

“What they have done is set 23 lots of equipment, so you pick a lot that you think is required for your specific hospital. After picking, you know the providers.” Kahiga said.

“But whoever selected them, that was a programme decided by the national government. We are just landlords.” He added.

He stressed the urgent need for dialysis machines in county hospitals, warning that without them, patients were at risk.

“Currently, dialysis machines are not working in the county government hospitals because the equipment provided under MES has run its course. Anyone that is being put in those machines is risking their life.” Kahiga said.

The NESP, launched as a successor to the controversial MES, aims to provide medical equipment to county hospitals on a leasing basis.

Under the scheme, an undisclosed supplier will install machines in county facilities and receive payments directly from the contentious Social Health Authority (SHA).

However, critics have expressed concern that the leasing fees may consume most of the funds allocated to healthcare, leaving counties with minimal resources for actual healthcare delivery.

Senators have described the NESP as “opaque” and akin to the MES scandal, which saw the Kenyan government spend Sh63 billion on dysfunctional medical equipment.

At least 37 counties have already signed agreements with the Ministry of Health to supply the medical gadgets, but the identities of the suppliers remain unclear.

“We were caught up in a situation in which we know the food is bad and might harm us but it is better that we eat.” Kahiga said noting the urgency of the decision despite its potential drawbacks.

During the session, Nyeri County Attorney Kimani Rucuiya also raised concerns about the legality of the deal.

Rucuiya, who chairs the County Attorneys Forum, argued that the agreement violated the Constitution and procurement laws, pointing out that the Intergovernmental Participation Agreement (IPA) should have preceded the procurement process.

“The government violated the constitutional mandate by directly procuring a function that is devolved.” Rucuiya said.

Despite these concerns, Kahiga defended the governors’ actions, explaining that they were caught between the need to provide essential services and the lack of alternative solutions.

“It was the best option for now.” Kahiga said.

Senators criticised the deal as shady.

Busia Senator Okiya Omtatah demanded that Kahiga specify the legal clauses that allowed counties to sign the agreements.

Isiolo Senator Fatuma Dullo accused the governors of not fully understanding the programme’s operations, suggesting that the deal could be worse than the MES scandal.

“It appears you are confused and don’t know how the programme run.” Dullo said.

Nandi Senator Samson Cherargei criticised the governors for cooperating with the national government in a way that undermines the Constitution’s Fourth Schedule, which outlines the functions of county governments.

“You should resist this attempt to claw back county functions by the national government. If we allow that, then we will be killing devolution.” Cherargei warned.