Nairobi Governor Mike Sonko's Ksh285 million debt to Kenya Medical Supplies Authority (KEMSA) is among the arrears that have Auditor General Edward Ouko worried.
The money which is part of the Ksh3.4 billion owed to KEMSA by the Ministry of Health and the counties saw Ouko raise doubts over the recoverability.
"As similarly reported in the previous year, the receivables from exchange transactions balance of Ksh3,964,035,099 reflected in the financial statement as at June 2017, includes long outstanding receivables balance totalling Ksh3,404,520,984, comprising the Ministry of Health and counties, whose recovery is doubtful," the Auditor General raised concern.
According to the report for the year ended June 2017, the ministry under Cabinet Secretary Sicily Kariuki owes KEMSA Ksh1.1 billion while the counties owe it Ksh2.3 billion with Nairobi county owing the highest.
Other counties owing KEMSA include Nakuru (Ksh147 million), Narok (Ksh98 million), Kitui (Ksh97 million), Kilifi (Ksh96 million), Homa Bay (Ksh91 million) and Nyeri (Ksh90 million).
"No explanation has been provided by the KEMSA management for failing to recover these long outstanding debts," Ouko added.
An existing agreement between KEMSA and the counties allows them to pay within 45 days after the delivery of drugs and medical supplies.
The ministry's debt arose from the supply chain services offered by the medical agency to various national programmes including family planning and the East Africa Public Health Laboratory Networking Project.
KEMSA Chief Executive Officer Jonah Manjari told the National Assembly’s Public Investments Committee (PIC) that the agency is constantly communicating with the counties and that there are signs that they will clear their debts.
Other counties with big debts include Meru (Ksh78m), Bomet (Ksh63m), Kakamega (Ksh62m), Murang’a (Ksh61m), Machakos (Ksh59m), Wajir (Ksh56m) and Siaya (Ksh51m).
