KEMSA (Kenya Medical Supplies Authority) has announced intentions to recover over KSh 2.7 billion owed by County Governments. The Authority said it aims to collect at least KSh 500 million owed by county governments to boost its service delivery capacity.
KEMSA CEO Terry Ramadhani said the move comes after separating the agency’s credit and sales departments. Strengthening the credit management department ensures the agency’s revolving fund is sustainable.
KEMSA has debt of KSh 2 billion owed to suppliers
Ramadhani said fast settlement of pending bills at the Authority by the Counties would help speed up payment of some KSh 2 billion owed to suppliers, which is overdue.
Ramadhan said restructuring the credit department has led to outstanding debts dropping from KSh 3.9 billion to KSh 2.7 billion. The earlier KSh 3.9 billion debt has now dropped to KSh 2.7billion with nine counties having cleared their outstanding accounts with KEMSA,” Ramadhani said.
Counties that have cleared their KEMSA outstanding dues include Kilifi, Nakuru, Laikipia, Nyeri, Meru, West Pokot, Turkana, Kisii and Makueni.
The Authority has also stepped up deliveries with increased credit sales collections to the counties.
As of mid-April 2022, KEMSA successfully dispatched KSh 9.73billion worth of Essential Medicines and Medical Supplies (EMMS) and National Health Strategic Programs (NHSP) supplies to 47 Counties.
The agency added that over 32,000 supplies were dispatched to more than 7,600 health facilities countrywide.
The revelation by Authority comes months after the Kenyan state agency issued an appeal to county governments to prioritize the settlement of more than KSh 3.9 Billion pending bills to the Authority.
The authority’s chairperson Mary Mwadime said the settlement of the bills would help speed up reforms at the Authority, which were being implemented to curb mismanagement of funds.
Mwandime revealed that some county governments had extended much-needed support to KEMSA by prioritizing the settlement of outstanding dues owed to the agency.
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