Kenya is facing a potential Sh8.3 billion loss due to undelivered Covid-19 vaccines. Auditor General Nancy Gathungu’s report indicates that while the government entered into a contract for 13.33 million doses, only 1.80 million were delivered, resulting in significant penalties and raising questions about procurement accountability.
Kenya is poised to incur a loss amounting to Sh8.3 billion concerning undelivered Covid-19 vaccines, as reported by Auditor General Nancy Gathungu. The government committed significant funds to procure these vaccines; however, only a fraction of the agreed doses was delivered, prompting concerns about fiscal accountability in public expenditures.
The Ministry of Health entered into a contract in 2021 with the Africa Vaccine Acquisition Trust (AVAT) and the Export-Import Bank (AFREXIMBANK), aiming to procure 13.33 million doses for Sh7.46 billion. Despite this agreement, merely 1.80 million doses were received, leaving 11.52 million doses unshipped. Although the government stated it no longer needed the remaining doses, it was still obligated to fulfill the payment terms outlined in the contract.
As of August of the previous year, 2.72 million doses had been produced but not delivered, with indications that these were marked for destruction as they were deemed unnecessary. The delays in payments have resulted in additional costs, accumulating Sh930.59 million in interest penalties, thus raising the total financial liability to Sh8.38 billion.
There are increasing inquiries regarding the decisions made by health officials concerning procurement assessments. The Auditor General remarked on the potential unfulfilled value of the vaccination agreement, emphasizing that the risks of accruing further penalties remain with the ongoing delays in payment resolution.
This situation echoes previous Covid-19 procurement controversies involving significant financial losses due to mismanagement. In 2021, recommendations were made for the prosecution of senior officials from the Kenya Medical Supplies Authority (Kemsa) due to irregularities in Covid-19 supply deals. Despite investigations, accountability among high-ranking officials remains absent, raising concerns regarding enforcement of refund directives to suppliers who overcharged the government.
Throughout the pandemic, Kenya reported over 350,000 Covid-19 cases and more than 5,000 fatalities. While the urgency in vaccine procurement was justified during the pandemic, the resultant mismanagement has culminated in financial repercussions for the country. The government has sought to engage AFREXIMBANK in negotiating the waiver of accrued interest, though a response to this request is still pending.
In conclusion, Kenya faces a significant financial challenge of Sh8.3 billion due to the undelivered Covid-19 vaccines. The situation calls into question the accountability of health officials and the effectiveness of measures to safeguard public funds. The legacy of past procurement scandals continues to haunt the country, highlighting the need for better governance and oversight in public health spending. The ongoing negotiations for interest waivers further complicate the financial landscape as the government seeks solutions to mitigate these fiscal repercussions.
Original Source: eastleighvoice.co.ke
