Governors reject Sh35b medical equipment plan

Kenyatta National Hospital resident doctors demonstrate from Afya House to Parliament Buildings Thursday demanding their July salaries from the Government. [PHOTO: JENIPHER WACHIE/STANDARD]

County Governments have rejected an inaugural plan by the Government to lease medical equipment worth billions of shillings for public hospitals in all counties.

The governors have already written to the Ministry of Health, saying they are not interested in getting the equipment unless they come as donations.

Instead of purchasing the equipment, the ministry has floated a tender to award a contract for the equipment for referral health facilities through a Managed Equipment Service (MES) Arrangement.

The ministry advertised a tender for a leasing period stated as seven years, with an option of extending it for three years. It is expected to cost taxpayers more than Sh35 billion. Already, Treasury has allocated Sh3 billion in the current financial year.

The Council of Governors (CoG) wondered why the ministry was keen on managing procurement sources for the county and sub-county hospitals yet they are devolved services.

"We have told the ministry that unless it's a donation, we will not sign any contract with suppliers on any equipment," CoG Chairman Isaac Ruto said.

Ruto said it was unacceptable that the national government had retained almost Sh17 billion for procurement meant for level 4 and 5 hospitals, adding that they want the money to be devolved so that each county can do its procurement on its own and in accordance with its needs.

"We want to avoid a situation where like in the past, obesity drugs were sent to North Eastern yet people were suffering from drought and malnutrition," he said.

The equipment tender was advertised on June 6 but was cancelled, only to be re-advertised on July 10.

The county bosses are uncomfortable with the arrangement, citing a letter they received from the ministry last month asking them to make arrangements to service ultrasound machines which fell into disuse less than a year after they were acquired.

"We don't want somebody to procure for us and then pass the cost to us later," Ruto said.

 In 2012, the Government distributed 60 ultrasound equipment to hospitals and the warranty for servicing the equipment by Philip Medical Systems (EA) Ltd expired on June 30, 2013.

"Several hospitals that received the equipment have reported to the ministry that the equipment are malfunctioning. Being a capital investment, the ministry wishes to strongly recommend that the county governments take responsibility and make arrangements with the supplier for a maintenance contract in order to prolong the working life of the equipment," former Health PS Fred Segor wrote to CoG on June 23.

The governors' opposition comes only days after local firms, majority of who have been importing the medical equipment, fear that the clause is meant to technically lock them out, with claims that a Chinese company with local partners who are highly connected have been earmarked for award of the mega deal.

"The debate around this contract is whether it's prudent to do capital leasing, operation leasing or buy the equipment. We are asking questions as to whether we should buy or lease things like wheelchairs and we want these things to be done properly," Health Committee Vice Chairman Robert Pokoshe said.

Yesterday, outgoing PS Fred Segor said the concerns of bidders have been addressed in a reply he made to them following several inquiries sent to the ministry.