Govt on the Spot Over Ksh90B Debt Taken in 1995

President Uhuru Kenyatta (right) and Health CS, Mutahi Kagwe
Images of the Health Cabinet Secretary, Mutahi Kagwe(left) and President Uhuru Kenyatta(right)
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The state has been given exactly seven days to come up with a payment plan and clear Ksh90 billion they owe to a private company from 1995. 

The private company supplied the state with antimalarial medicine and equipment between 1995 and 1997, which amounted to Ksh90 billion. 

In the meeting on Thursday, November 4, the National Assembly Committee on Health ordered the Ministry of Health, the National Treasury and the Office of the Attorney General to provide a detailed report within 7 days on how it will effect the payment. 

In the report, the government and its entities is required to explain why it had not settled the bills despite various court orders instructing it to do so, and explain in detail how it was planning to settle the loan. 

Health CS Mutahi Kagwe and Parliamentary Committee Chair Hon Sabina Chege During the Launch of PSA Oxygen Plant in Eldoret, Uasin Gishu County.
Health CS Mutahi Kagwe and Parliamentary Committee Chair Hon Sabina Chege During the Launch of PSA Oxygen Plant in Eldoret, Uasin Gishu County, on 29 August, 2021.
KBC

The committee, which is chaired by Murang'a Woman Representative Sabina Chege, stated that in the last 25 years, the state has not shown any willingness to pay Equip Agencies Limited the money.

“I am directing that within seven days, a meeting between Equip Agencies, Heath PS, Attorney General and Treasury to negotiate and agree on a fee and communicate the same to us.

"The Ministry should also give us a proposal on how they are willing to pay whether it is by installments or not,” Chege directed. 

Other legislators present in the meeting included Alfred Keter of Nandi Hills, James Murgor of Keiyo North, Muriuki Njagagua of Mbeere North, Captain Ruweida Mohammed who is the Lamu County Woman Rep and Martin Owino of Ndhiwa. 

Keter stated that it is shameful that the suppliers are begging MoH to pay them their dues, yet they supplied the goods without fail. 

His sentiments were backed by Murgor and Ruweida, who said that the agency did business with them, and the least they can do is honour their contract.

The committee issued this directive after the office of the Attorney General proposed to pay the company only Ksh4 billion from the Ksh90 billion the state owes it.

The company, however, rejected the offer, and instead demanded that it be paid Ksh14 billion. 

A file iumage of the National Treasury
The National Treasury offices at Harambee Avenue, Nairobi
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