KEMSA sends all non-core staff home as reforms kick off, KDF to take over operations

KDF to take over KEMSA as staff are sent home

November 4, 2021 12:12 PM

A report by the task force appointed to investigate KEMSA’s shortcomings has revealed challenges in critical functions.

Kemsa Board Chair Mary Chao

The Board of the Kenya Medical Supplies Authority (KEMSA) has confirmed that organisational reform efforts have kicked off.

In a press conference on Thursday, November 4, KEMSA Board Chair Mary Chao announced that all non-core employees had been asked to work from home as the agency goes through its reforms.

“The release of all staff to work from home is a procedural formality to facilitate the review of the organisational structure and will be undertaken expeditiously to ensure that the staff complement is fit for purpose and within the approved staff establishment levels,” she said.

A report by the task force appointed to investigate KEMSA’s shortcomings has revealed challenges in critical functions within the Authority that deserve to be expeditiously addressed.

The challenges identified in the report confirm that KEMSA is currently grossly underperforming and largely unable to meet clients 'urgent needs, particularly the delivery of essential Medicines and Products to the counties, referral hospitals and programs.

The key challenges are divided into four buckets :

1. Financial Crisis - This is manifested through a lack of Financial Controls, with a Debt Crisis arising from structures that are not optimised to collect.

2. Supply chain Crisis - This has led to a low Order Fill Rate and a High Turn Around Time (TAT)

3. Warehousing and Distribution Chaos - This is manifested through deadstock, purchase of non - priority items and poor optimization of distribution models.

4. Procurement chaos - We experience Long Lead Times as a result of operating inefficiencies.

After a review of the report, the Board holds that these challenges will require further review of KEMSA around three key areas:

1. Structure - The organisation structure establishes the degree to which it is constrained in achieving the strategic objectives.

2. Governance - To determine the best-fit approach to leadership and oversight across the organisation.

3. Processes - To determine gaps in the organisation processes, procedures and technology.