The United States Agency for International Development (USAID) and Global Fund have threatened to withdraw Ksh400 billion meant for Kenya, following graft allegations in the Kenya Medical Supplies Agency (Kemsa).
According to reports, the two bodies have expressed concerns with the government over the misappropriations of donor funds meant for Covid-19.
The Global Fund and USAID had earmarked the billions for the support HIV/Aids, tuberculosis and malaria programs for the next three years.
Citizen TV reports that Kemsa could lose up to Ksh2 billion, as they are struggling to sell personal protective equipment (PPEs) that were bought at inflated prices. Most of the equipment are almost hitting their expiry dates.
The media house reports that Kemsa is holding a stock pile of around Ksh6 billion, and wants to sell it at Ksh4 billion to avoid total loss.
The state agency has in the recent past been caught up in a web of graft allegations leading to the loss of billions of shillings donated both locally and from abroad to help in the fight against corruption.
It is not yet clear how much the agency has lost so far, but they are already asking for Ksh5 billion from the government to cushion them from the loss occasioned from the PPEs saga.
Mid this month, Kemsa CEO was sent packing after the graft in the body was revealed, which showed that the agency bought medical equipment at double the market prices.
Last month, the agency reportedly procured N95 (1860) masks at an outrageous price of Ksh1,300 per piece against the Ksh700 market price and ordered 5000 pieces.
At the same time, it also bought KN95 masks at Ksh700 per piece against the market price of Ksh450, went ahead and ordered 1,836,400 masks.
Disposable masks that are sold at the market price of Ksh50 per piece were also procured at Ksh90 each.