Kenya is staring down a potential financial loss of Sh8.3 billion following a failed procurement of Covid-19 vaccines, according to a new audit by the Office of the Auditor General. The report, released by Auditor General Nancy Gathungu, reveals that the Ministry of Health committed billions of shillings to vaccine doses that were never fully delivered, raising serious questions about fiscal accountability and the decision-making processes during the pandemic. In 2021, at the height of global efforts to secure Covid-19 vaccines, the Kenyan government entered into an agreement with the Africa Vaccine Acquisition Trust (AVAT) and the Export-Import Bank (AFREXIMBANK) for the purchase of 13.33 million doses. The total cost for this deal amounted to Sh7.46 billion, but only 1.80 million doses were actually delivered to the country. Despite Kenya’s subsequent announcement that it no longer required the remaining 11.52 million doses, the terms of the contract bound the country to pay for the full amount regardless of delivery.
The audit shows that by August of the previous year, 2.72 million of the ordered doses had already been manufactured and were awaiting shipment. However, with Kenya cancelling the remaining order, these vaccines were slated for destruction, representing a significant waste of resources. The Auditor General’s report noted that the vaccines were no longer needed and had expired, emphasizing that the financial commitment had not yielded the intended public health benefit. Moreover, the delayed settlement of payments has accrued interest penalties totaling Sh930.59 million, pushing the total outstanding obligation to $64.88 million or approximately Sh8.38 billion.
This situation has reignited concerns about Kenya’s handling of public funds, particularly during the urgency of the Covid-19 pandemic. The government’s miscalculation in bulk-ordering vaccines that it ultimately did not use has drawn criticism, especially in light of Kenya’s ongoing economic challenges. The Auditor General has cautioned that continued delays in settling the account may result in even more financial penalties, exacerbating the already heavy burden on the public purse. The report raises broader concerns about whether due diligence and proper assessments were conducted before the government committed to such a large vaccine order.
This controversy echoes earlier scandals involving the Kenya Medical Supplies Authority (Kemsa), where irregular procurement of medical supplies led to significant financial losses. In 2021, members of Parliament recommended the prosecution of top Kemsa officials over the mismanagement of Covid-19 resources. Investigations by the Ethics and Anti-Corruption Commission (EACC) revealed that inflated pricing and overstocking of medical supplies had cost taxpayers billions. However, despite widespread public outrage and multiple investigations, no senior official has been prosecuted or held accountable for the mismanagement.
During the pandemic, Kenya recorded over 350,000 Covid-19 cases and more than 5,000 deaths. The urgent need to secure vaccines was clear at the time, but the mismanagement of resources now haunts the government and taxpayers alike. The government has requested AFREXIMBANK to waive the accrued interest penalties, but the request remains under review. Meanwhile, the fallout from the undelivered vaccines serves as a stark reminder of the cost of poor planning and lack of oversight in public procurement, particularly in times of crisis.
