Kenya is facing a loss of Sh8.3 billion over undelivered Covid-19 vaccines as revealed in an audit report. The Ministry of Health paid for 13.33 million doses but only received 1.80 million. Financial penalties have accrued due to delayed payments, prompting questions about procurement practices and accountability.
Kenya is confronted with a significant financial loss amounting to Sh8.3 billion due to undelivered Covid-19 vaccine doses. The Auditor General Nancy Gathungu’s latest audit report highlights that the Ministry of Health made payments for vaccine doses that were never fully delivered, raising serious concerns regarding public spending accountability.
In 2021, an agreement was made between the Ministry of Health, the Africa Vaccine Acquisition Trust (AVAT), and the Export-Import Bank (AFREXIMBANK) for the procurement of 13.33 million Covid-19 vaccine doses at a total cost of Sh7.46 billion. However, out of the total, only 1.80 million doses were actually delivered, leaving an outstanding balance of 11.52 million doses.
Despite the Ministry’s assertion that they no longer required the remaining doses, contractual obligations dictated Kenya’s responsibility to pay for the entire order. By August of the previous year, 2.72 million doses had already been manufactured but were not shipped to Kenya. The report mentions, “The unshipped component was indicated as no longer needed and was due for destruction.”
Additionally, delayed payments have accrued further penalties, summing to Sh930.59 million. The report reveals that Kenya’s outstanding obligation stood at $64.88 million, approximately Sh8.38 billion. The Auditor General has expressed concern regarding potential financial losses, emphasizing the absence of careful assessments by health officials prior to making such bulk purchases.
This situation has been reminiscent of previous procurement scandals linked to the Kenya Medical Supplies Authority (Kemsa), which involved significant losses due to questionable dealings. Despite recommendations for prosecution of Kemsa officials in 2021, no substantial accountability measures have been enforced. Although the National Assembly directed suppliers who overcharged to refund the government, enforcement of these directives remains uncertain.
The mismanagement of resources amidst the urgency to procure Covid-19 vaccines has led Kenya to grapple with substantial financial ramifications. The government has sought the waiver of interest penalties from AFREXIMBANK, however, this request is still pending approval.
In conclusion, Kenya is facing an alarming financial loss of Sh8.3 billion due to undelivered Covid-19 vaccines, as revealed by Auditor General Nancy Gathungu. The report underscores the need for better accountability and assessment practices in public health procurement. Historical patterns of mismanagement and lack of legal accountability further complicate the current situation, leaving the government to seek remedies for the financial burden.
Original Source: eastleighvoice.co.ke
