USAID, Global Fund Threaten to Cancel Sh400 Billion Support to Kenya over Covid-19 Funds Scandal

The United States Agency for International Development (USAID) and the Global Fund have raised concerns over the alleged misappropriation of Covid-19 funds donated to Kenya.

The two donors have threatened to withdraw at least Sh400 billion meant to support HIV/Aids, tuberculosis, and malaria programs in Kenya for the next three years over the alleged Sh7 billion scandal at Kenya Medical Supplies Authority (Kemsa), according to reports.

They have written to the government expressing concerns over irregular procurements at Kemsa and the implementation of the grants given to the State agency.

Initial investigations by the Ethics and Anti-Corruption Commission (EACC) revealed that top Kemsa officials flouted procurement procedures in the award of the multi-billion-shilling tender for supply of Covid-19 equipment to a company named Kilig Limited.

The company was awarded the contract under the cover of emergency needs and was given three months to supply as opposed to one month. Further, companies with less than six months in operation won tenders without providing credible financial records.

These companies supplied the Covid-19 equipment at inflated prices. For example, Kemsa is said to have procured more than 1.8 million KN95 masks at a cost of Sh700 per piece, which is nearly double the Sh450 market price on the higher side.

Disposable three-ply surgical masks were allegedly procured at Sh90 per piece against the market price of Sh50 while personal protective equipment (PPE) was acquired at Sh9,000 per set as opposed to Sh4,500 on the market.

Last week, Kemsa CEO Jonah Mwangi was suspended by the agency's Board to pave the way for investigations into the matter.

Mwangi was suspended alongside two other senior Kemsa officials; Charles Juma (Head of Procurement) and Eliud Mureithi (Commercial Director).