Kemsa in yet another Sh63b medical kits scandal

Tuesday, September 15th, 2020 00:00 |
Isiolo Senator Fatuma Dullo. Photo/PD/File

Hillary Mageka @hillarymageka

Kenya Medical Supplies Authority (Kemsa) is once again on the spot  over the Sh63 billion controversial medical leasing equipment tender.

A damning Senate report implicated the authority in the ambitious Medical Equipment Service (MES) programme that has been termed a criminal enterprise shrouded in opaque procurement processes.

In the report by the Senate Ad hoc committee that investigated the controversial programme, Kemsa has been fingered for unilaterally handpicking a supplier for consumables and reagents for use by the equipment.

The committee chaired by Isiolo Senator Fatuma Dullo has asked the anti-graft body to investigate circumstances under which a contractual monopoly was created for the supply of consumable and reagents for Renal (Lot 5) and Radiology (Lot 7) equipment for the benefit of Angelica Medical Supplies Ltd. 

In its findings, the committee observed that Kemsa did not determine whether the reagents and consumables could be procured from any other supplier at lower prices.

Committee said  Kemsa’s action subjected State to exorbitant prices as the supply of the consumables was ‘monopolised’.

Best price

“Kemsa’s decision to undertake direct procurement resulted in deliberately monopolising the market for reagents and consumables in favour of Angelica Medical Supplies Limited,” the report. 

Authority has been faulted for directly hiring Angelica in contravention of section 74 of the Public Procurement and Disposal of Public Assets, which requires that a procuring entity use direct procurement if there is only one person who can supply the goods, works or services being procured. 

“Kemsa did not get the best price for the consumables and reagents for Lot 5 and Lot 7 as alleged because it did not try to establish whether the products could be sourced at more competitive rates from other suppliers,”.

“Committee therefore finds that Kemsa contravened Article 227 (1) of the Constitution, which requires that public entities use a competitive system and cost effective when it contracts for goods and services,” the report.

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