The Kenya Medical Supplies Authority (Kemsa) is demanding a total of Kes2.7 billion from counties as part of a stakeholder engagement-focused credit management strategy under the new boss Terry Ramadhani.
The agency targets to collect at least Kes500 million in outstanding dues from county governments to boost its service delivery capacity, under the new Kemsa Credit Management strategy.
The chief executive said the strategy follows a recent restructuring and the separation of the authority’s sales and credit management functions that were previously one unit.
Ms Ramadhani said the enhancement of the credit management functions under an independent department is also geared at ensuring the financial sustainability of the Kemsa revolving fund.
She added that the speedy settlement of pending bills at Kemsa by the counties will, in turn, help accelerate the payment of the agency’s suppliers who are currently owed Kes2 billion.
“We have undertaken structural changes that allow for a more efficient credit management process with our stakeholders at the core. The recently adopted credit management strategy is bearing fruit. The earlier Kes3.9 billion debt has now dropped to Kes2.7 billion with nine counties having cleared their outstanding accounts,” she said.
Kilifi, Nakuru, Laikipia, Nyeri, Meru, West Pokot, Turkana, Kisii and Makueni counties have paid up their dues.
Kemsa has also stepped up deliveries to the counties with increased credit sales collections.
As of mid-April 2022, the agency dispatched Kes9.73 billion worth of essential medicines and medical supplies (EMMS) and national health strategic programs (NHSP) supplies to all 47 counties.
More than 32,000 EMMS and NSPHP supplies were dispatched to over 7,600 health facilities countrywide.