Six-month standoff on ARVs ends after deal struck

The government has abandoned the demand that it should be the only one to distribute a Sh2.1 billion consignment of HIV drugs donated by the US, ending a six-month standoff on distribution of the anti-retroviral drugs.

However, the governments of Kenya and the United States of America have reached a compromise that the consignment stuck at the Port of Mombasa will be distributed by Mission for Essential Drugs and Supplies (Meds). The government had insisted that only the Kenya

Medical Supplies Agency (Kemsa) would distribute the drugs to counties.

Meds is a faith-based organisation leading in promoting healthy lives that supplies health products to various entities in the country.

The ARVs, among other medicines imported in January, have been lying at the Port of Mombasa for six months. They were donated by the US government through its aid agency USAid, and are yet to be taken to county hospitals due to a standoff over taxation and the distributor.

This has placed the lives of 1.5 million HIV patients who have been struggling with a shortage of the drugs at risk.

The matter was worsened by the insistence of the Ministry of Health to have Kemsa distribute the drugs, a decision the USAid opposed, instead selecting its own entity – American firm Chemonics – to procure and distribute the donations to Kenya, causing tension between the two entities.

Distribution of drugs

The US agency opposed Kemsa due to the corruption scandals that have rocked the agency in recent months.

However, Health Cabinet Secretary Mutahi Kagwe had earlier indicated that the government was not going to sign any contract with an organisation it knows nothing about to bring medications into the country, unless the USAid does that and takes care of the tax issues.

“We do not want to work with that private company, it has several accusations from other countries and we have brought this to the donor’s attention and if they have to continue working with them, then it has to be their issue and the Kenyan government is not going to be part of their deals,” Mr Kagwe said.

The Ministry of Health and the donors in March formed a committee to look into the issues surrounding the agency while they look for a way forward.

“With the agreement, the USAid had instructed the Ministry of Health to put everything from the last meeting in writing, including the officers at Meds that the USAid was to engage, so that they release the drugs,” said a source who sought anonymity.

A source at the Ministry of Health told the Daily Nation that the letter is yet to be delivered to the US embassy, and it was only after that that the two will start distributing the drugs to the counties.

Stalemate unlocked

“We agreed, yes, in a meeting but the ministry was to put everything in writing, the letter is yet to be written. But the process is ongoing. The distribution will take place immediately after that,” said the source.

However, according to a statement from Dr Ruth Laibon Masha, the CEO of the National Aids Control Council (NACC), the two have since unlocked the stalemate and the drugs were ready for distribution. 

“On May 11, 2021, a committee was formed to work on modalities of resolving the stalemate. We held a series of meetings with US representatives where all outstanding issues were resolved,” Dr Masha said.

The resolutions, according to the statement released by NACC, include signing of a framework and implementation letter to facilitate tax and fee waivers, and distribution of the USAid-purchased commodities. These commodities are now cleared and ready for distribution.

The consignment arrived on January 18, 2021, after an application for the import permits and approval of import declaration form were submitted on December 16, 2020 and resubmitted in January 5, 2021 by the appointed agent.

The donors had earlier hinted they were considering moving the drugs to another country, citing the remaining shelf life of the drugs and the storage charges accruing. 

By the beginning of June, the storage charges had amounted to more than a quarter of the total cost of the drugs.