KEMSA Ups Credit Management In A Bid To Collect More Than 2bn Owed By Counties

NAIROBI, Kenya, May 26-The Kenya Medical Supplies Authority (KEMSA) is on course to collect more than Sh2.7 Billion owed by County governments as part of a stakeholder engagement-focused credit management strategy.
 
Under the new KEMSA Credit management strategy, the authority has set a target to collect at least Kshs 500million in outstanding dues from county governments to boost its service delivery capacity.
 
According to KEMSA CEO Terry Ramadhani, the new collection strategy follows a recent restructuring and separation of the Authority’s Sales and Credit Management functions previously intertwined.

The enhancement of the Credit Management functions under an independent department Ramadhani said is also geared at ensuring financial sustainability of the KEMSA revolving fund.

The speedy settlement of pending bills at KEMSA by the Counties, she said, will, in turn, help accelerate the payment of KEMSA suppliers who are currently owed Sh2 billion in overdue accounts.

“We have undertaken structural changes that allow for a more efficient credit management process with our stakeholders at the core. The recently adopted credit management strategy is bearing fruit. The earlier Kshs 3.9 billion debt has now dropped to Sh2.7billion with nine counties having cleared their outstanding accounts with KEMSA,” Ramadhani said.

The counties that have cleared their KEMSA outstanding dues include Kilifi, Nakuru, Laikipia, Nyeri, Meru, West Pokot, Turkana, Kisii and Makueni counties.

KEMSA has also stepped up deliveries to the counties with increased credit sales collections.

As of mid-April 2022, KEMSA successfully dispatched Sh9.73billion worth of Essential Medicines and Medical Supplies (EMMS) and National Health Strategic Programs (NHSP) supplies to 47 Counties. More than 32,000 EMMS and NSPHP supplies were dispatched to more than 7,600 health facilities countrywide.