Health Cabinet Secretary Dr. Deborah Barasa has addressed reports surrounding the leasing of medical equipment under the National Equipment Service Program (NESP).
This comes after the program transitioned to a new model following the expiry of the Medical Equipment Service (MES) program in December 2023.
In a statement issued on Wednesday, December 4, Barasa explained that the transition strategy was developed in line with resolutions from the 10th Extraordinary Summit held between the National and County Governments on December 18, 2023.
“A technical committee, comprising representatives from the Ministry of Health and County Governors, was established to oversee the transition and ensure uninterrupted health services,” Dr. Barasa stated.
To sustain the program, a Fixed Fee-for-Service (FFS) model was adopted.
This innovative approach shifts financial responsibility for medical equipment from county facilities to contracted vendors, who supply, maintain, and upgrade advanced equipment without requiring counties to pay upfront costs.
Under the FFS model, suppliers invest in and install medical equipment, while counties focus their resources on patient care. The vendors are compensated based on services rendered.
Dr. Barasa emphasized that the Ministry followed a transparent procurement process, in line with the Public Procurement and Asset Disposal Act.
Advertisements were placed on public platforms such as the MyGov bulletin and the Ministry’s website in June 2024.
Bids were evaluated jointly by representatives from the Ministry and County Governments, adhering to strict guidelines, including alignment with SHA benefit tariffs.
Seven qualified bidders were awarded contracts in October 2024, and an administrative framework was established to guide implementation.
Counties voluntarily signed Intergovernmental Participatory Agreements to facilitate the program.
However, Council of Governors Vice Chair Mutahi Kahiga voiced concerns, claiming counties were compelled to sign the deal due to limited fiscal capacity to procure equipment independently.
“We did not procure the machines. It was entirely handled by the Ministry of Health, from advertising tenders to selecting providers. Counties were not involved,” Kahiga stated, adding that counties merely host the equipment under the program.
So far, 34 counties have signed the agreement.
However, questions remain regarding the legal framework underpinning the procurement process, which was spearheaded by the National Government.
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