Kenya At The Verge Of Loosing Ksh 1.5 Billion In Covid-19 Related Stock Held By Kemsa

Expired stock, non-sellable stock, and stock with a short shelf life account for the majority of the losses, according to KEMSA acting CEO John Kabuchi, who testified before the National Assembly's Health Committee.

Members of the committee were enraged by the discoveries, as they had already investigated and recommended that the stocks be sold last year.

"The committee did its investigations and made recommendations that needed to be implemented immediately," said committee chair Joshua Kuttuny.

"The CEO was then supposed to be investigated, with a lot of respect to EACC, this was enough to take this man to court, but because of the back and forth, Kenyans are going to lose close to 2B."

KEMSA management, on the other hand, had to respect the law in disposing of the stock, according to Kabuchi, because doing so would have gotten them in trouble.

"We sorted authorization from the government to dispose of the stock, which took time, and after gaining permission, our sales team is engaging counties because we are selling at market pricing, and we expect it will be sold," Kabuchi explained.

Kuttuny, on the other hand, expressed concern that selling the viable stock would be difficult, particularly in light of a government decree that eased various limitations, including the wearing of masks.

"Do you believe the Cabinet Secretary's decision to eliminate some of the restrictions will put you in jeopardy?" asked Cherengany.

Expired stock accounts for Sh171.9 million of the stock, Sh120.6 million was not sellable, and a record Sh1.2 billion has a limited shelf life and will expire in six months, according to records filed in Parliament.

"We plan to sell shares worth Sh800 million from the viable stock by December 2022," Kabuchi added.

The committee now wants the Public Prosecutions Office and the Ethics and Anti-Corruption Commissions to pursue those responsible for the loss.