Kenya Veterinary Vaccines Productions Institute Lost Ksh550 Million In Dubious Procurements And Corruption, Report

An internal audit report reveals that the Kenya Veterinary Vaccines Production Institute (KEVEVAPI) could have lost a whooping Ksh550 million to international direct/single sourced questionable procurements, corruption practices and nepotism.

This includes the purchase of Industrial Centrifuge (sharples) from Sigma for over Ksh3.7 million, Industrial ultrafilter at Ksh8.6 million, Vaccine filling machine at Ksh34 million among others

The report reveals that sourcing of chemicals, serum, vaccine bottles and reagents from Argentina, China, and Germany without any contracts. Payments were done prior to delivery.

Some direct procurements occur without the procurement department being involved in the sourcing of the materials. The procurement is only directed at the end of the transaction to raise an LPO (as evidenced in the order of adult bovine serum below).

The report implicates Mathew Nzioka, the assistant production manager, who requested for quotation, Airfreight charges & Proforma invoice of 3060 litres of Adult Bovine Serum on May 12, 2017. On May 17, 2017, Analia- Internegocios-sa (Argentina) issued proforma invoice. The institution has no records of how the company was identified.

Dr Jane Wachira-CEO KEVEVAPI- signed a Purchase Order on May 19, 2018 and the company was paid Ksh3.5 million without involvement of the procurement department.

Payments amounting to USD 767,289.39 (Ksh77 million) were paid to various foreign firms on a strength proforma invoices without a performance bond or bank guarantee as a security that firms would honour their obligations.

In a voucher No 261 seen by Kahawa Tungu, an amount of USD 5,400 (Ksh540,000 million) was paid to M/s Industrias Hogner Sacifa identified for technical services by single sourcing contrary to the provisions of public procurement law.

In yet another one, voucher No 1041, an amount USD 55,200 (Ksh5.5 million) was paid to M/s Ibarra Lopez as consultancy fee was identified irregularly for consultancy services through single sourcing.

KEVEVAPI is also said to have misused Ksh200 million grant from Treasury through State Department of Livestock, Ministry of Agriculture, Livestock & Irrigation Development Vote.

“The money was not used as per the approved CONCEPT given to ministry, parliamentary committee on Agriculture and the treasury. New expenditures were introduced contrary to the original CONCEPT. Key changes and diversion were reflected in the Biosecurity allocation worth Kshs54million funding including internal road repairs, perimeter wall fencing and external building painting & repair expenditures & Extension of Office spaces,” states the report.

Payment vouchers for board meetings for FY 2015/2016 revealed that KEVEVAPI incurred an expenditure totaling Ksh14,782,000 on board expenses against a budget of Ksh10,000,000 leading to over expenditure by Ksh4,782,000.

The institute has purchased a list of equipment which are non-functional including; Laminar airflow at Tissue culture Lab Embakasi, Bench centrifuge at Bacteriology lab Embakasi, Control panel monitors at production Lab Embakasi, Sucrose gradient spectrophotometer at quality control laboratory Embakasi (bought in 2016 and the supplier has not been paid to date).

Read: Revealed: Senior Managers At NITA Stealing Public Money And From Employees

Despite all that, KEVEVAPI sales have dropped from Ksh538,289,000 in 2014/2015 to Ksh477,396,000 in 2015/2016 to Kshs 383,998,803 in 2016/2017 representing a non-performance factor of more than Ksh154,290,197 (almost 30%). The international market has shrank by over 80%. The Institution has also lost key international markets.

It also lost over Ksh92 million after 430,000 doses of vaccine expired in their custody due to laxity.

The report adds that the president was duped to launch vaccine which had not undergone field trials, had not been registered nor the level of purity ascertained.

Due to conflict of interest and discrimination, the institution has lost over Sh3million in advertisement and sitting allowances of the Board.

“The Board and CEO need to be investigated over conflict of interest, discrimination and nepotism,” suggests the report.

The report further states that the CEO, Dr Jane Wachira, influenced the evaluation committee to award Medsurge Company Ltd a certain tender, occasioned by influence of Medsurge Directors Namely Alex Gikandi and Catherine. There was monetary exchanges to a tune of Ksh2million.

The land belonging to KEVEVAPI has not been spared either. The land which was 93 acres in 1993 is now about 23 acres only. The rest has been grabbed and fenced off and structures developed on it. Below are photos of the land.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email

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