Kenya Medical Supplies Authority (Kemsa) turned down an offer to buy personal protective equipment (PPE) at half the price, a deal that could have saved taxpayers Sh1.65 billion, lawmakers heard yesterday.
A parliamentary committee was told how the agency rejected an offer from Northlink GSC Ltd, a company that was ready to supply the PPE at Sh4,500 instead of Sh9,000.
Northlink GSC Ltd director Ahmed Takoy told the National Assembly Public Investment Committee that his firm had ready PPE from China in April but Kemsa officials told him to review the price to Sh9, 000.
“I told them that was my price and I was not willing to change,” Mr Takoy told the Mvita MP Abdulswamad Nassir-led team at parliament buildings.
“I believe in clean business. Many people approached me to do some things but I rejected their offers,” Mr Takoy said.
He added that he wrote a letter of intent to Kemsa on April 14, 2020 indicating his company’s willingness to supply 3-surgical masks at Sh90 each,N95 at 900 and PPEs at Sh4,590.
Asked by the MPs if whether his PPE were of good quality, Mr Takoy said he got his merchandise from China, the same country where other suppliers got theirs and did not understand why they were selling at double the price.
He, however admitted that he got a tender to supply 1.5 million pieces of surgical face mask disposal 3 ply ear-loop at a cost of Sh130 million.
According to Mr Takoy, his company was registered in 2008 and has two directors.
The firm mainly deals in civil and electrical works and general supplies of non-pharmaceuticals, he said.
Mr Nassir said the committee would call some of the companies that were willing to supply at the items to Kemsa at lower prices but were rejected.
“The talks that Kemsa is reported to have had with the companies are a scandal,” the Mvita MP said.
“They were meant to sterilise irregularities already done. We will call the companies, find out the rates they were willing to supply and why they were locked out by Kemsa.”
Information at the committee shows that the Kenya Covid Fund bought PPE at much lower prices than what Kemsa was offering.
Wajir East MP Rashid Amin said it was clear from the onset that Kemsa officials wanted to misuse public money.
Northlink GSC Ltd becomes the second company to go public about the low prices of their items being rejected.
A report by the Office of the Auditor-General tabled in Parliament in October showed that Kemsa officials also rejected a discount from Ms Gladlab Supplies Ltd to buy face masks at Sh3,183, choosing instead to pay Sh4,500 for the same items.
Auditor-General Nancy Gathungu said Kemsa CEO Jonah Manjari – now suspended – ignored the discount offer and requested the company to supply the items for Sh4, 500 a pack as had reportedly been agreed during negotiations between the supplier and the agency’s tender evaluation committee.
Dr Manjari remains suspended alongside directors Eliud Muriithi (Commercial) and Charles Juma (Procurement) while investigations continue into the saga.
Meraky Healthcare, another firm, also found itself on the spot yesterday after it emerged that it did not have financial or technical capacity but ended up getting a Sh140 million tender.
Meraky director Wairimu Mbogo could not explain why her company was among those picked to supply items to Kemsa without proper documents.
