Government Preferential & Procurement Procedures (Tender & Bidding)

The Government of Kenya procures medicines mainly through KEMSA (Kenya Medical Supplies Agency). It has been estimated that KEMSA’s purchases constitute 30% of all prescription drugs in the Kenyan market. The Agency also procures for some donor partners.

KEMSA’s 2010/2011 Government budget (not counting donor contributions) for the procurement of essential medicines for public hospitals is US$ 19.8 million; together with US$ 29.7 million for Rural Health Facilities (Dispensary Kits + Health Centre Kits + Loose Drugs RHF), this makes a total of US$ 49.5 million. Out of 343 items on the Essential Drug List (EDL), KEMSA procures only about 117 selected items, based on available funds. Many EDL medicines cannot be purchased because of budgetary constraints.

Mission for Essential Drugs and Supplies (MEDS) is another large-scale, bulk procurer of medicines. It is a not-for-profit organization which procures medical items for Faith-Based Organizations (FBO) and some donors. About 45 per cent of MEDS’ annual turnover of 800 million to 1 billion KSh (about US$ 12 million) is spent on medicines.

Some donors procure directly. Purchases from Global Fund donations are undertaken by the Procurement and Supply Chain Management Consortium, which is made up of four partners, KEMSA, Crown Agents, Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ), and JSI – John Snow Inc.[1]

 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[1] Dr Regina Mbindyo, Dr David Okello, and Dr Francis Kimani, Experience with Supporting Pharmaceutical Policies and Systems in Kenya: Progress, Lessons and the Role of WHO, pp.2-3.