IEA Launches the Study on Leasing of Medical Equipment Project in Kenya: Value for Money Assessment


Post Date: 14 February 2020   |   Category: General   |   Hits: 775


Thursday, 13th February 2020 - The Institute of Economic Affairs (IEA-Kenya) launched a report titled “Leasing of Medical Equipment Project in Kenya: Value for Money Assessment” on Thursday, 13th February, 2020 at the Sarova Stanley Hotel. The study produced by IEA Kenya with the support from Open Society Initiative for Eastern Africa (OSIEA) sought to investigate whether the leasing of medical equipment’s (Managed Equipment Services-MES) project as an alternative health care financing option to scale up health infrastructure for the provision of specialized medical care was the most cost-effective intervention, especially as a Public Private Partnership project. 

Presenting the study findings during the launch, Mr. John Mutua, Programmes Coordinator at IEA pointed out that the project design was not informed by a county health needs assessment exercise yet counties are not homogenous. 

“Due to transparency issues, including access to important documents such as the project contract, it was unclear whether the project cost is inclusive of suppliers’ obligations, beyond supply and installation of equipment, including training, repairs and replacement and insurance costs. About four years into the project, study findings reveal cost variations. For the benefit of an additional 21 hospitals, the project cost went up to Ksh. 63 billion, said Mutua. The cost of MES Project remains questionable. 

Mr. Kwame Owino, CEO at IEA-Kenya echoed John’s sentiments by saying that Lack of transparency in the entire project with regards to terms and conditions of the contract and poor regulation increases financial and corruption risks.  

The objective of the study was three-fold; to present some facts and demystify the MES Project in Kenya; to analyze the status of implementation and performance as a value for money assessment of the MES project; and draw recommendations for policy engagement on corrective measures for the MES project. 

In attendance during the launch of the report were; Mr. Edwin Kamar, Deputy Auditor-General, Financial Audits at the Office of the Auditor General; Mr. Polycarp Otieno - Deputy Program Officer, Open Contracting for Health Project at TI-Kenya; IEA Members, the media and the public at large.

Follow the link to read or download the report:https://www.ieakenya.or.ke/publications/research-papers/leasing-of-medical-equipment-project-in-kenya-value-for-money-assessment