Health crisis looms in Kenya as Sh422 million is withheld

Governors John Nyagarama (Nyamira), Isaac Ruto (Bomet) and Charles Mochama during a fundraiser in aid of accident victims at Chebilat trading centre. The Danish Government has accused counties of poor financial reporting. [Photo: GILBERT KIMUTAI/STANDARD]

NAIROBI: Poor financial reporting on use of funds by 30 counties has led the Danish government to withhold more than Sh422 million.

The money was meant to support the health sector in all 47 counties during the first and second quarter of the 2015-16 financial year.

Following the decision, Council of Governors (CoG) Chairman Peter Munya in a letter seen by The Standard has called a crisis meeting in Nairobi today. Health executives and accountants in county treasuries handling the Danida Health Sector Service Funds (DSSF) have been invited to the meeting.

In a letter to Treasury Principal Secretary Kamau Thuge, also seen by The Standard, the Deputy Head of Mission at the Danish Embassy Lars Bredal said Sh422,355,000 has been withheld until first draft audit reports are availed to her government.

“The Embassy has contracted an independent auditing firm, Ernst & Young LLP, to perform rolling semi-annual external audits of Danida funds transferred through the integrated financial management information system to the 3,313 level-two and three health facilities for operations and maintenance. This exercise is expected to commence in mid October 2015,” reads the letter by Ms Bredal.

She added: “As you are aware auditing of Danida programmes is mandatory and as such the Royal Danish Embassy (RDE) undertakes annual audits of the programmes using the Government of Kenya auditing systems.”

The receipt of copies of the statutory financial report from the counties has during the first year, been below requirements, Bredal said in the letter date October 5 and copied to CoG and the Ministry of Health.

Sources at CoG said the external auditors will work closely with the Auditor General. “To prepare for the exercise, the CoG secretariat shall liaise with all the health and finance executives, together with chief officers to provide support and ensure the audit process proceeds seamlessly,” CoG acting Chief Executive Officer Jacquiline Mogeni said.

FORMULATING LAWS

The decision by the Danish government adds to the challenges the health sector has been going through, including strikes, which ended recently and a seesaw between the national government and counties on the management of the sector.

CoG had accused MPs of formulating laws that would undo devolution of the health function. Currently, a contested health bill is pending before the National Assembly, which the CoG says is illegal.

Mr Munya accused the Government of fueling the nurses’ strike.