How Govt Lost Ksh63.7M In Mosquito Nets Scandal- CS Nakhumicha

However, she indicated that the Global Fund knew about the shortcomings in the procurement process

How Govt Lost Ksh63.7M In Mosquito Nets Scandal- CS Nakhumicha
Health CS, Susan Nakhumicha during a meeting with the leadership of the Kenya End Malaria Council at Afya House on May 10, 2023. /MINISTRY OF HEALTH

Health Cabinet Secretary Susan Nakhumicha, on Tuesday, June 20 shed light on the chain of events that led to the loss of a total of Ksh63.7 million (US$455,000) due to delays in securing grants from Global Fund in mosquito nets procurement.

Appearing before the National Assembly Health Committee, Nakhumicha revealed that the Ministry of Health and Global Fund differed on the specifications of the nets to be delivered, resulting in changes effected to the tender.

However, she indicated that the Global Fund knew about the shortcomings in the procurement process, and indicated that the ministry needed to clear up the mess and fix the gaps before applying for a fresh procurement.

Health CS, Susan Nakhumicha speaking during the celebration of World Blood Donor Day at Ihura Stadium in Murang'a County on June 14, 2023. /MINISTRY OF HEALTH

"Global Fund gave reasons on why they decided to go to Wambo. One is that a new open international tender would need to be issued which would take longer based on our procurement regulations.

"They noted the gaps in the procurement process and therefore they were cautioning themselves and ourselves against the gaps which I believe now is an opportunity we clean up our house to be able to carry out the next procurement of Global Fund," she stated.

The Health CS added that the steep slope in the procurement process had led to the Ministry losing two per cent which would have been the profit they were anticipating.

"Many times we say there are no losses but there are to the extent that advertisement was done, committees sat to do evaluation and time was invested in that decision.

"There is what we were to make out of that process which is 2% and that is what we lost. Had we completed the process and procured the nets we would have earned our 2% for that process. That would be $455,000 (Ksh63.7 million)," she went on.

She however assured that a mass campaign for mosquito nets was still on course for November this year.

“The nets will be delivered to KEMSA from Global Fund’s procuring entity Wambo, we shall still get whatever we get in terms of storage and distribution. It is important to highlight that it is an opportunist loss because we anticipated getting that 2%, yet we missed it because of this,” she added.

Global Fund had floated the multi-billion tender for the supply of 10.2 million long-lasting polyethylene and polyester nets to be distributed from November 2023 to July 2024 to supplement the fight against Malaria mass campaign.

Two companies made the cut out of 17 and submitted their tenders to Global Fund but were nullified on grounds that they failed to meet the mandatory documentation requirement, leading Global Fund to cancel the tender and award it instead to its own procurement wing, Wambo.org.

The procurement process was bungled, a matter that led to the dissolution of the entire Kenya Medical Supplies Authority (KEMSA) board, its CEO and chairman and the dismissal of Josephine Mburu, the Principal Secretary for Health in charge of Public Health and Professional Standards, by President William Ruto.

Mburu on Tuesday, June 6 however denied that her docket was tasked with overseeing operations of the medical agency tasked with procuring medical equipment and that her former colleague Peter Tum - who was moved to the Ministry of Sports, was the one in charge.

Former Health PS Josephine Mburu. /FILE