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Cabinet Secretary to the National Treasury Ukur Yatani. [Wilberforce Okwiri, Standard]
The Ministry of Finance yesterday gave the go-ahead for the clearance of a consignment of life-extending drugs for HIV and Aids patients after a public outcry.
The National Treasury said it had received and approved a request by the Ministry of Health to exempt a shipment of anti-retroviral drugs that was held at the Mombasa port over a tax dispute with American donor agency, USAID.
Cabinet Secretary Ukur Yatani said they were "moved to give the waiver given the unique situation and public interest".
The order will come as a reprieve for millions of patients whose health and lives were at stake following fears of a shortage of the life-saving drugs.
A disagreement between the Kenya Medical Supplies Authority (Kemsa) and USAid had left the medicines languishing at the port, as the Kenya Revenue Authority demanded tax for the drugs that are given out free to patients.
Another amendment two months later saw the US Government withdraw a $5.2 million (Sh562 million) support towards the medical commodities programme.
Details available publicly on a US Government website tracking its spending on aid programmes indicate that Kemsa was facing questions over procurement fraud.
USAID's contract with Kemsa, totaling Sh56.6 billion over five years, will be one of the largest the aid agency has signed when it ends on April 23.
Since 2015, most Global Fund and USAid-funded medical commodities are purchased and distributed by Kemsa, which floats tenders. Others are procured directly by USAid but distributed by Kemsa.
Drugs that are purchased in this manner are free of local taxes and import duties. Kemsa says in the tender documents it will facilitate tax and VAT exemptions.