Contract Workers at KEMSA Face Job Losses Following Audit
After the completion of a two-week audit ordered by the new board, at least 200 contract employees of the troubled Kenya Medical Supplies Authority (KEMSA) will be laid off on 1 July 2023.
Felix Koskei, Chief of Staff and Head of the Public Service informed KEMSA employees on Thursday that the audit will be conducted to rationalize the institution’s operations, which have been plagued by graft cases.
Koskei stated that the government will conduct such audits in public institutions to reduce the soaring wage bill, which continues to consume over 60 percent of the funds allocated to the national government.
“When we say that those on a contract will not have their contracts renewed, it is because we want to optimize for the sake of having enough money to develop this country; otherwise, all the money will be in the pockets of our employees and nothing will move…so this is something that the government has identified,” he explained.
Approximately fifty percent of KEMSA’s contract employees will be terminated on July 1; according to Koskei, this situation will be replicated at other overstaffed public institutions.
“Many institutions, primarily parastatals, have realized that they have excess personnel. In general, the wage bill should not exceed 40 percent, but if it exceeds 60 percent, 65 percent, or 70 percent, then what is left for development?” He struck a pose.
The only way to ensure substantial funding for development is to revisit the issue of staff establishment, which is why we have convened a meeting to discuss the matter.
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KEMSA was recently embroiled in the COVID-19 procurement scandal, which resulted in billions of shillings in losses, and the mosquito nets tender scandal, which resulted in losses of over Ksh.63 million and led to the dismissal of Health Principal Secretary Josephine Mburu, the suspension of former CEO Terry Kiunge, and the dissolution of the former board.
However, according to the head of the public service, there are mechanisms in place to apprehend those involved in corrupt practices at the institution.
“There is no sacred cow and no divine command, nothing, you do it by yourself. “Responsibility is to individuals, not institutions, not a group of people, not a department, you’re on your own…you will face individual consequences,” he stated.
The new administration, which has warned politicians against interfering with the authority’s ongoing reform process, has stated that they are on track to implement additional reforms, including a review of direct procurement contracts and an investigation into procurement processes.
Contract Workers at KEMSA Face Job Losses Following Audit
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