The National Treasury has waived taxes totalling to Ksh.45.8 million levied on ARV drugs to enable the clearance of the drugs as they had been held at the port of Mombasa awaiting the conclusion of the formal engagement framework between the government and the USAID, Treasury has consigned the drugs to the American embassy as a stop gap measure.
National Treasury Cabinet Secretary Ukur Yattani who was appearing before the Senate to respond to the standoff over ARV drugs with the United States Agency for International Development (USAID) said that the government had introduced intervention measures including foregoing Ksh.45.8 million duty.
The CS stated that as per the Treasury consultations with USAID, there was lack of a formal engagement framework when the drugs were imported to Kenya.
USAID explained that the delay in the formalization of the framework was partly occasioned by the elections in the United States.
The previous agreement between the Kenya Medical Supplies Agency (KEMSA) and USAID medical commodities programme (MCP) which was signed in September 2015 amounting to USD649,997,960 for a period of five years had lapsed on September 30, 2020.
Yattani said, “In the absence of a formal engagement framework, the Ministry of Health requested the National Treasury to facilitate the clearance of the drugs. This was promptly done vide our letter ref. No. Dfn 415/232/011 dated 6th April, 2021 having taken into account the importance of the drugs in the enhancement of service delivery in the health sector, particularly during this time of covid-19 pandemic. In this regard, I would like to emphasize that both the Ministry of Health and USAID have acknowledged the support from the National Treasury in facilitating the clearance of the drugs.”
He added that once USAID concludes a public financial management risk assessment it is conducting at various government departments, the issue of USAID contracting a private-based company Chemonics to distribute the drugs because of corruption with KEMSA will be resolved.
The government of Kenya, the Global Fund and USAID are the three agencies that mainly fund HIV health commodities with Global Fund and USAID grants funding more than 80% of the commodities.
Through the National Treasury, the government of Kenya also provides co-financing funds for the fight against HIV, TB and Malaria as this is a requirement to access the Global Fund allocation.
According to Treasury, increased Kenyan ownership through the universal health coverage is critical to reduce donor dependency
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