Kenya has paid dearly following a tax tussle with the United States and the government over HIV and tuberculosis drugs worth Ksh1.1billion stuck at the port of Mombasa.
This is after the Kenya Medical Supplies Authority (KEMSA) lost a Ksh70 million tender to distribute drugs on behalf of the American government.
The tender is to be given to Chenomics which is an American company.
"As discussed on the call, after reviewing evidence and credible allegations regarding fraud and corruption identified by USAID's office of the Inspector General, and in light of the Biden administration's focus on combating corruption, the US government has determined that it is no longer tenable to continue working through Kemsa," reads a statement addressed to Health CS Mutahi Kagwe.
The Kenyan government has, however, argued that reforming KEMSA would be a better solution. Kagwe feared that the move would weaken the medical supply authority.
The Ksh70 million tender ended last year but has been extended from month to month by the US government.
The matter of issuing a five-year-contract was set to come up when the US indicated that it did not want to work with KEMSA anymore.
The consignment of medication worth Ksh7.6 billion involving ARV drugs has been at the Mombasa port since January 18.
The Kenyan government indicated that the import arrangement had flouted tax waiver policies on government-to-government donations.
“USAID kindly requests your urgent intervention and assistance in clearing these obstacles with Pharmacy and Poisons Board (PPB) Import declaration Form(IDF)/import permit applications and tax and duty waivers,” says a letter to the Ministry of Health (MoH) signed by USAID mission director Mark Meassick dated January 29.
The tussle had led persons living with HIV/AIDS fear for their lives due to a shortage of anti-retroviral drugs (ARVs).
