A recent audit by Auditor General Nancy Gathungu reveals that Kenya faces a potential loss of Sh8.3 billion due to payments for Covid-19 vaccines that were never delivered. Despite ordering 13.33 million doses, only 1.80 million were received. The government is now liable for full payment under the contract, which has led to accrued interest penalties. This situation raises serious concerns about procurement practices within the Ministry of Health.
Kenya is poised to incur a loss of Sh8.3 billion due to payments made for Covid-19 vaccines that were not fully delivered. An audit report by Auditor General Nancy Gathungu has unveiled a lack of accountability regarding public spending, as only a fraction of the procured doses reached the country. The report raises concerns about the Ministry of Health’s management of vaccine procurement, particularly its agreement with the Africa Vaccine Acquisition Trust to secure doses that were ultimately not provided.
In 2021, the Ministry of Health agreed to procure 13.33 million Covid-19 vaccine doses at a cost of Sh7.46 billion, yet only 1.80 million doses were delivered, resulting in an outstanding order of 11.52 million doses. Despite not requiring the remaining doses, the terms of the contract mandated full payment, which has accrued interest penalties of Sh930.59 million, exacerbating financial strain on the government.
The Auditor General cautioned that the outstanding obligation is approximately $64.88 million (Sh8.38 billion) as of May 2024, and highlighted the risks associated with the government’s failure to conduct thorough assessments prior to large procurements. This situation echoes past procurement scandals within the Kenya Medical Supplies Authority, where substantial taxpayer funds were lost.
Despite recommendations from MPs in 2021 for the prosecution of senior officials over improper procurement practices, accountability has been elusive as no high-ranking official has faced repercussions. The National Assembly’s directive for suppliers to repay overcharges has also seen insufficient enforcement.
While Kenya had over 350,000 Covid-19 cases and more than 5,000 deaths during the pandemic, the urgency of vaccine acquisition has been overshadowed by the inefficiencies that have led to these financial repercussions. The government has sought the waiver of interest penalties from AFREXIMBANK, but approval remains pending.
In conclusion, the Kenya Ministry of Health’s failure to manage Covid-19 vaccine procurement appropriately has resulted in a significant financial loss of Sh8.3 billion. The audit report emphasizes the necessity for accountability in public spending and raises pertinent questions about the effectiveness of past procurements, highlighting the urgent need for improved oversight in future health initiatives.
Original Source: eastleighvoice.co.ke
