On June 16, Chairman Irungu Nyakera published a piece heralding sweeping reforms at KEMSA and touting efficiency and effectiveness as the hallmarks of a new era in purportedly winning back public and government trust.
Before we accept this narrative at face value, it is important to first dig deeper into the reality behind the facade of reform because, for far too long, KEMSA has been embroiled in controversies and scandals – from suspicious tender awards to opaque procurement practices.
These persisting issues cast doubt on the sincerity of the purported reforms.
If you look at recent developments at KEMSA, it becomes increasingly evident that the road to genuine transformation is fraught with challenges and obstacles that cannot be ignored.
Over the past weeks, we have consistently aired some of these critical matters.
A scandal erupted earlier this year involving Chairman Irungu Nyakera and allegations of his manipulation of tender awards to benefit companies associated with his political networks.
It was reported that Nyakera used his influence to steer tender awards towards firms with directors from his home county of Murang’a.
For instance, companies such as Unico Essentials Ltd, Alencure Logistics Ltd, Quillar Enterprises Ltd and Appropriate Essential Supplies Ltd which have directors from Murang’a were awarded contracts.
This favoritism did not sit well with many.
The tendering process itself came under scrutiny as firms that had initially been disqualified at the evaluation stage were somehow shortlisted and awarded contracts. This included a Ksh 641 million tender for the procurement of medical supplies which was supposed to be reserved for people with disabilities (PWDs).
It was, however, discovered that some of the awarded firms did not have any PWDs as directors.
One glaring example is Amor Express Ltd, which was awarded KES 40 million despite being disqualified at the preliminary stages. Similarly, Balmer Healthcare Ltd received KES 10 million despite issues with its bidding documents.
These instances highlight the deeply entrenched issues of nepotism and corruption within KEMSA’s tendering process.
The Ethics and Anti-Corruption Commission (EACC) has since launched an investigation into these dealings.
Another scandal that rocked KEMSA this year involved one Faith Mwikali Ndiwa who posed as the personal doctor of opposition leader Raila Odinga.
She was charged with a Ksh 25 million fake KEMSA tender scheme. Mwikali allegedly deceived Nigerian national Jude Olabayo Veracruz into investing Ksh 25 million in a non-existent tender to supply Long Lasting Insecticidal Nets (LLINs) to KEMSA.
Using her companies, Ashley Dylan Limited and Faizel Limited, Mwikali forged contracts and amendments to make her fraudulent scheme appear legitimate.
Between June and December 2022, she is accused of fraudulently obtaining the money from Veracruz. When the matter was brought to court, Mwikali denied the charges of forgery and obtaining money under false pretenses.
The prosecution opposed her release on bond, citing the need for further investigations and concerns about her being a flight risk.
But among all these scandals, perhaps the most shocking involves the disbursement of Ksh 31.5 million to a legal entity, Titus Makhanu and Associates Advocates.
This case centers around KEMSA officials concealing crucial information regarding the payout.
Documents reveal that on March 19, 2024, KEMSA officials, including Mr. Fred Wanyonyi, Ms. Christine Mwangi, and Dr. Andrew Mulwa, met with representatives from the law firm to discuss the settlement.
Despite reaching a consensus, the minutes of this meeting were never shared with the law firm, raising suspicions of foul play.
Sources indicate that the negotiation was contentious, with KEMSA officials proposing contingent payment based on the execution of a standing order by the law firm.
This was seen as an attempt to pressure the firm into accepting a reduced fee.
The KEMSA board later ratified the payment on May 15, 2024 but again the minutes of this meeting were not conveyed to Titus Makhanu and Associates Advocates.
The law firm has since expressed readiness to provide comprehensive audio-visual documentation of the meeting in court.
They have also indicated plans to subpoena key KEMSA officials to testify about the payment negotiations and the suppression of information.
This man Dr. Andrew Mulwa is slowly becoming a key figure in all major scandals within KEMSA.
According to a source within KEMSA, Dr. Mulwa’s tenure as Acting CEO has been marked by a considerable decline in the organization’s efficiency.
The source claims that the order fill rate has been constantly diminishing with warehouse racks and shelves now empty.
Dr. Mulwa is on record admitting that KEMSA is living from hand to mouth yet he appears to focus more on public relations stunts to give the illusion of progress.
A particularly troubling episode involves a directive from PS Harry Kimtai on August 8, 2023, instructing KEMSA to procure, warehouse and distribute family planning products worth Ksh 1 billion on behalf of the Ministry of Health.
Upon seeing the substantial budget, David Muttu, the procurement manager in charge of the pharmaceutical section, reportedly saw an opportunity for personal gain.
By an apparent coincidence, Sai Pharmaceuticals Ltd requested the removal of the WHO requirement for family planning products.
Dr. Mulwa then wrote to Head of the Reproductive Health Department Dr. Bashir to have the WHO requirement removed from all family products being procured.
The tender for these products was advertised but extended from September 29, 2023 to October 12, 2023 in order to facilitate the specification changes.
When Dr. Bashir refused to alter the specifications, Dr. Mulwa terminated the tender on September 26, 2023.
Following this, Muttu advised Dr. Mulwa to personally convince PS Kimtai to change the specifications, disregarding the importance of the WHO requirement for quality.
As a result family planning products have not yet been procured which poses a risk of a future supply crisis.
KEMSA also faces a potential loss of over Ksh 100 million which represents the 10% commission they would have earned if the procurement had been completed within the current financial year.
The source further alleges that Muttu (previously removed from the procurement department by former CEO Dr. Manjari) managed to return after Dr. Manjari’s suspension.
On June 5, 2023, the KEMSA board revoked a list of pre-qualified suppliers.
Procurement managers, however, advised the CEO to withhold advertising for new prequalifications.
This led to ongoing procurement without an approved list.
Dr. Mulwa needs to explain which pre-qualified suppliers he has been using especially since many tenders for the financial year 2023/24 were awarded and contracted after their validity had expired — a clear violation of procurement laws.
Insiders warn that unless procurement officers Evelyn Oyamo, Evelyne Wachuka, Lorna Kithinji, Caro Mugo, Nicholas Chenge, Edward Buluma, David Muttu and Caroline Gichinga are removed KEMSA will continue to be plagued by graft.
These officers are cancerous to the organization and responsible for perpetuating a cycle of corruption that implicates the entire board, CEO, and other senior officials.
KenyanHour 