The Kenya Medical Supplies Authority (Kemsa) has announced plans to form a team to negotiate with counties regarding issues related to the Social Health Authority (SHA) and significant medical supplies pending bills.

At a meeting in Mombasa, Kemsa resolved to set up a team tasked with holding discussions to ensure that counties clear their outstanding debts. “On the issue of debt management, a team will be set up to negotiate the issue of SHA at-source discussions to clear county debts,” the resolutions stated.

The meeting was attended by the Kemsa board, led by Samuel Tunai, and management, headed by CEO Waqo Egersa. The purpose of the meeting was to align the authority’s strategic plan for 2025 to 2030.

Earlier this month, county governments were reported to owe Kemsa a cumulative Sh3.5 billion, an amount that both the national government and counties have agreed to settle. The resolutions acknowledged that Kemsa’s current and projected financial status was not satisfactory and outlined plans to implement radical measures to reduce costs and increase revenue.

“The development of the new strategy provides an opportunity to rethink the business model,” the team noted.

Among the risks identified in the strategy were frequent changes in the board and management, long-standing debts, and unfavourable procurement laws. “Constant changes in the board and management, long-standing debts, unfavourable procurement laws, and low stock turnover are risks that need to be addressed,” the team agreed.

They also resolved to catalogue the frameworks and rules that constrain its business model and to carry out stakeholder mapping to better understand how to serve its customers. To address the debt issue, Kemsa has committed to aggressive debt collection, collaborative initiatives with SHA and county governments through the Facility Improvement Financing (FIF), and deductions from past debts at source. The team further noted that cost centres within KEMSA must be encouraged to generate revenue.

Egersa expressed confidence in KEMSA’s ability to support Universal Health Coverage (UHC )by ensuring the timely availability and distribution of essential medical supplies across the country. He highlighted the ongoing consultations with governors to expedite debt clearance, which is seen as a crucial step towards improving service delivery.