The government has recommended the sacking of more than half of the staff at the troubled Kenya Medical Supplies Authority (Kemsa).
A report by a local daily indicated that the State Corporations Advisory Committee (SCAC) recommended the sacking of nearly half of the Kemsa staff. Further reports also intimated that the mass firing will affect about 920 employees and sacking letters were drafted on Monday, November 1, 2021.
The Ministry of Health recommended investigations by the State Corporations Advisory Committee, whose mandate is to advise the government on the general administration of state corporations.
SCAC officials met with MoH bosses last month where the idea of restructuring Kemsa was recommended. During the meeting, it was agreed that a clean-up at the agency should be implemented to bring on board fresh blood to run the parastatal.
During another meeting between MoH and SCAC officials, it was decided that Kemsa employees would be fired and the government would go on to declare nearly half of the positions redundant.
The scandals at Kemsa saw donors retreat and demand action by the government. One of the biggest donors to Kenya, The Global Fund declared that the country risked losing Ksh48 billion if graft investigations at the government agency were not completed and changes made to ensure transparency.
After an expose by NTV, dubbed 'Covid Billionaires' which revealed the graft at Kemsa, donors turned down a request of an additional Ksh3.4 billion to boost the Covid-19 response.
On Monday, Embakassi East MP, Babu Owino, wrote to Health Cabinet Secretary, Mutahi Kagwe, seeking answers over the mass firing and further demanding an explanation why staff members such as cleaners were targeted in the clean-up exercise.
“What are the steps the ministry is taking to ensure that those who will be affected by such irrational moves are fully compensated and allowed to continue with their normal lives,” the MP's statement read.
Babu Owino further sought to know from CS Kagwe the procedure the Ministry was going to apply to lay off employees and what happens to those that have loans with financial institutions.
“The CS should explain whether his Ministry is prepared for the many court cases that will emanate from the move he has taken.”
Graft incidents at major government agencies put Kenya at loggerheads with international lenders and the donor community. Last month, a report indicated that the World Bank refused to release the Ksh14 billion that the Treasury intended to use to procure vaccines.
Notably, the World Bank approved the loan in June 2021, but they held back the money causing a delay in procurement of the vaccines by the government.
