Home News Kemsa Moves to Resolve Pending Debts Over SHA with County Governments

Kemsa Moves to Resolve Pending Debts Over SHA with County Governments

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The Kenya Medical Supplies Authority (Kemsa) has announced plans to engage in negotiations with county governments to address outstanding debts related to the Social Health Authority (SHA) and significant medical supplies arrears.

In a strategic meeting held in Mombasa, Kemsa’s board and management resolved to form a specialized team tasked with facilitating discussions aimed at clearing long-standing debts. The team’s primary goal will be to negotiate SHA issues and open avenues for counties to settle their dues.

The urgency of this move is underscored by the substantial debt burden. Reports indicate that county governments owe Kemsa a staggering KSh3.5 billion, a sum both the national and county governments have agreed to address. This financial strain has hampered Kemsa’s ability to provide essential medical supplies efficiently.

Among the challenges identified by Kemsa’s strategic review were frequent changes in leadership, long-term debt accumulation, and an unfavorable procurement environment. “Constant changes in the board and management, coupled with long-standing debts and low stock turnover, are critical risks that demand urgent attention,” said Waqo Egesa, Kemsa’s CEO.

To mitigate these challenges, Kemsa has committed to implementing an aggressive debt collection strategy while fostering collaboration with county governments. The authority also plans to streamline its business model, map key stakeholders, and address policy constraints affecting service delivery.

In a bid to support Universal Health Coverage (UHC) in Kenya, Egesa expressed confidence in Kemsa’s ability to ensure the timely availability and distribution of vital medical supplies nationwide. Ongoing consultations with county governments are expected to expedite debt clearance, seen as a crucial step toward improving service efficiency.

With these efforts underway, Kemsa remains hopeful that a strengthened partnership with counties will pave the way for enhanced healthcare delivery and financial stability.

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