UPDATE: The Kenya Revenue Authority (KRA) has issued a statement over the allegations that have been widely shared on social media over the last two days.
"KRA would like to inform the public that the story running on social media titled “ARVs Meant For Kenyans Shipped To West Africa After KRA Demanded Taxes On Them” is not factual. KRA wishes to clarify that it has not declined to clear any ARV supplies."
On December 31, 2019, reports emerged that an entanglement among the US government, Kenya Medical Supplies Authority (KEMSA) and Kenya Revenue Authority (KRA) saw a shipment of Antiretroviral (ARV) drugs meant for Kenya shipped to West Africa, dealing a blow to the health ministry's fight against deadly HIV/AIDS disease.
The report alleged that the US, a major partner of Kenya through USAid, declined to pay tax slapped by KRA on an ARV shipment, directing KEMSA to pay.
The US partners with KEMSA, a statutory public health commodities procurer in Kenya to supply drugs in Kenya in their financial year which runs from September to October.
This is done through a process called Country Operational Plan (COP) which begins around March to June so as to allow its inclusion in the Federal budget which is presented to Congress for approval.
According to the report the drugs landed at the Mombasa Port in October 2019, and after the tax debacle ensued, KEMSA declined to pay following the alleged directive from the US.
This forced the shipment to be returned to USAid and later shipped to West Africa.
However, KEMSA's Chief Executive Officer, Dr Jonah Manjari Mwangi dismissed the report, terming it as false and baseless.
"The report is not true. That's all I can say for now. No more details, as those are false allegations," Manjari told Kenyans.co.ke on phone.
"KRA disputes the claims that there were ARVs diverted to West Africa due to taxation," an insider at the authority stated that it also dismissed the allegations as an articulation to raise unnecessary concern informing us that a statement would be issued later on.
A report by Daily Nation on Sunday, December 8, 2019, reported that the US had cut HIV health funding to the Kenyan government.
Kenya has received about Ksh700 billion from the President’s Emergency Plan for Aids Relief (Pepfar) since it was founded 15 years ago.
In 2017-18, Kenya received Ksh57 billion, which was reduced to Ksh50 billion in 2018, to approximately Ksh37 billion this year. The cut in funding reportedly affected NGOs funded by the US Government which undertook HIV-related work as a number of employees were fired.
In 2018, a report by the National Aids Control Council (NACC) indicated that there was a gradual decline in adult HIV incidence to an estimated 0.19%.
