The Ministry of Health has dismissed allegations that mystery suppliers are set to receive billions of shillings from the Social Health Authority (SHA) for the lease of medical equipment under the National Equipment Service Program (NESP).
In a statement issued on Wednesday, December 4, Health CS Deborah Barasa clarified that a transition strategy was developed after the expiration of the Medical Equipment Service (MES) program in December 2023 to sustain its achievements.
Barasa explained that a select technical committee, including representatives from the Ministry of Health and the Council of Governors, was established to oversee the transition. The committee resolved to adopt a new model for procuring medical equipment services.
“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. This innovative approach shifts the financial responsibility of medical equipment from government facilities, including county facilities, to contracted vendors,” Barasa stated.
She elaborated that 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 channel resources toward patient care. According to the CS, this model is distinct from the leasing option referred to in recent reports.
The CS further revealed that a public procurement process, in line with the Public Procurement and Asset Disposal Act, was conducted to operationalize the FFS model.
“Public advertisements were made in the MyGOV bulletin, the Ministry of Health website, and the Public Procurement Information Portal in June 2024. Tender submissions were received and opened in the presence of representatives from the Ministry, County Governments, and bidders,” she noted.
Barasa disclosed that after a rigorous evaluation process, contracts were awarded to seven qualified bidders in October 2024. Additionally, an administrative framework was established to guide the implementation of the FFS model, with county governments signing agreements to facilitate the program.
“Under this arrangement, suppliers invest in and place medical equipment in county health facilities at no upfront cost but will be paid fees for services rendered,” Barasa added.
She emphasized that the model promotes transparency, efficiency, and sustainability. Furthermore, SHA will reimburse health facilities for services rendered based on gazetted tariff amounts.
