Health CS Dr Deborah Barasa has issued a statement addressing and clarifying statements regarding a deal signed by counties to lease medical equipment under the National Equipment Service Program (NESP).
In a statement on Wednesday, December 4 CS Barasa stated that following the expiration of the Medical Equipment Service (MES) program in December 2023, a transition strategy was developed to sustain and build on the gains achieved under the program.
This transition the CS said was guided by resolutions made during the 10th Extraordinary Summit (Between the National Government and County Governments) held on December 18, 2023.
“A select technical committee, comprising representatives from the Ministry of Health and County Governors, was established to oversee the transition and ensure the continuity of health services without disruptions,” read the statement in part.
“As resolved by the Council of Governors in collaboration with the Ministry of Health, a Fixed Fee-for-Service (FFS) Model was adopted for the procurement of medical equipment services.”
CS Barasa Justifies National Equipment Service Program
Barasa said the innovative approach shifts the financial responsibility of medical equipment from government facilities, including county facilities, to contracted vendors.
The FFS model allows vendors to supply, maintain, and upgrade state-of-the-art equipment at no upfront cost to County health facilities, enabling counties to focus resources on patient care.
Under this arrangement, suppliers invest in and place medical equipment in county health facilities at no upfront cost but will be paid a fee for services rendered.
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MoH on Procurement Bids
Barasa stated that to operationalize the FFS Model, a transparent tendering process was undertaken informed by the Public Procurement and Asset Disposal Act.
“Public advertisements were made in MyGov bulletin, the Ministry of Health website, and the Public Procurement Information Portal in June 2024,” she said.
“Tender submissions were received and opened in accordance with the Public Procurement and Asset Disposal Act, in the presence of representatives from the Ministry, County Governments, and bidders.”
The CS mentioned that the evaluation process, conducted jointly by representatives from the Ministry of Health and County Governments adhered to strict guidelines including alignment with SHA benefit tariffs.
Following the evaluation, MoH said contracts were awarded to seven (7) qualified bidders in October 2024.
“An administrative framework has also been established jointly with the Ministry of Health and County Government to guide implementation of FFS model,” the statement read further.
At the same time, MoH said that County Governments have signed on a voluntary basis, Intergovernmental Participatory Agreements to facilitate the program.
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Controversy Over Leased Equipment Kits by Counties
However, Council of Governors Vice Chair Mutahi Kahiga disclosed that counties have been forced to sign the deal to ensure service delivery to the people as the majority of them have no fiscal headroom to procure the equipment.
“We did not procure the machines, it’s the Ministry of Health that did the procurement, they even put the advertisement in the newspapers, we were not involved,” Kahiga said.
Details show so far 34 County governments have signed the deal with scant details on the legal framework for the procurement of medical equipment as the National Government through the Ministry of Health is the mastermind of the deal.
“What they have done is to set 23 lots of equipment, so you pick a lot that you think is required for your specific hospital, after picking is when you know the providers, but whoever selected them that was a program decided by the national government, we are just landlords,” Kahiga averred.
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