Former Health Cabinet Secretary Mutahi Kagwe has shared insights into how the ‘Covid billionaires’ amassed their fortunes amid the global health crisis.
Speaking while being vetted before the parliament on Tuesday, January 14, Kagwe revealed that some businesses amassed wealth because of the desperate measures that had to be taken to secure essential supplies.
Further, he explained that the desperation left room for the abuse of procurement processes. However, he told the Committee on Appointments that several important lessons were learned from the experience.
“At such a time, money begins to take a secondary position when it comes to life and death. A lot of mistakes were made at the time, and I admitted it. But we did what we had to do,” he said.
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Mutahi Kagwe Explains How Covid Billionaires Were Made
Kagwe began by explaining that the emergence of Covid billionaires was partly driven by the skyrocketing prices of goods and commodities crucial for fighting the pandemic.
Additionally, he noted that in the early months of 2020, there was an urgent global demand for personal protective equipment (PPE) and medical supplies
“At that time, we were looking for anybody to give us a mask,” Kagwe recalled, highlighting the desperation during the shortage of basic protective gear.
Consequently, the Kenya Medical Supplies Authority (KEMSA) and other procurement agencies faced immense pressure, leading to significant abuses of the procurement process.
According to Kagwe, saving lives took precedence over financial considerations. He acknowledged that money became a secondary concern when the stakes involved life and death.
“A PPE could easily sell for Ksh15,000 or Ksh9,000. If they could have come at whatever price, we would have bought them because it was a question of saving lives or money,” he admitted.
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What did Kagwe Do?
However, as the crisis unfolded, measures were taken to curb exploitation and reduce dependency on expensive imports. One of the most significant steps was to mobilize local manufacturers to produce PPEs and other materials.
“But I took steps including calling all the manufacturers of materials, sitting outside my office with a bottle of water, and testing materials to see whether they could be used to make PPEs.
“Because of that, we were able to use our own people, in Shona, Athi River, Nakuru and other areas, to produce the same materials at a quarter of the price,” explained the former CS.
According to Forbes, nearly 500 people became billionaires during the pandemic year.
In response to the scandal, former President Uhuru Kenyatta gave the Ethics and Anti-Corruption Commission (EACC) a 21-day ultimatum on August 27, 2020, to conclude investigations, citing public interest.
However, his term ended before the probe was finalized.
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