Ruto ends Uhuru’s controversial KSh47.7bn county medical equipment deal
Ruto ends the controversial KSh47.7bn county medical equipment deal that was initiated by former president Uhuru Kenyatta
Ruto ends the controversial KSh47.7bn county medical equipment deal that was initiated by former president Uhuru Kenyatta.
President William Ruto has ended funding for the controversial leasing of medical equipment by counties even as he increased the equitable revenue share allocation to the devolved units.
The initiative, which has been dogged by controversy from its inception, has come to an end because the National Treasury did not include any funding for it in the proposed budget for the fiscal year 2023–2024.
This is due to the fact that the three-year lease between counties and the companies hired to lease the medical equipment expired in December of last year.
The lucrative lease contest was won by five international companies: General Electric from the United States, Philips from the Netherlands, Bellco SGL from Italy, Esteem from India, and Mindray Biomedical from China.
Former President Uhuru Kenyatta launched the medical leasing agreement in 2015.
Former President Uhuru Kenyatta launched the medical leasing agreement in 2015.
The corporations leased specialized equipment for theaters, renal therapy, intensive care units, and radiology to the counties.
The scheme has cost at least Sh47.7 billion.
Kenya’s top four wealthiest richer than 22 million people combined; Oxfam report
Government announces plans to raise the minimum pension
The scheme has cost at least Sh47.7 billion over the course of eight years.
There was controversy around the deal as many of the medical kits lay idle due to a lack of specialized staff to operate them.
Leasing, according to the government, would spare counties the high upfront expense of purchasing the kits, with the added bonus that the kits would be maintained and serviced by the contracted companies.
Counties were given a total of Sh380 billion in equitable revenue, up Sh10 billion from the Sh370 billion they received in the previous two fiscal years, according to the draft Budget Policy Statement.
“The proposal to increase the equitable share to Sh380 billion in the FY2023/24 is equivalent to 26.8 percent of the last audited accounts (Sh1.414 trillion for FY 2017/18),” said Treasury.
Further, counties have been allocated Sh32.91 billion in additional revenue allocation from loans and grants and a KSh776 million supplement for the construction of county headquarters.
Treasury has also allocated Sh7.5 billion to the Equalization Fund, an increase from Sh7.06 billion in the current financial year.
Also read,
Treasury unveils plan to start spying on your mobile money transactions following Ruto’s directive
KU to start training primary and secondary teachers on coding courses
Follow us
