Muhoho Kenyatta's hidden hand in the multi-billion leased medical equipment scheme for counties -

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A member of the first family is behind the multi-billion singled sourced leased Medical Equipment Management Scheme (MEMS) between counties and the national government worth a staggering Sh38billion annually

Kenyan News Day learnt that Muhoho Kenyatta, who is a younger brother to President Uhuru Kenyatta, was the prime mover of the one sided deal that has angered both Senators and Governors in equal measure.

Through a web of shell companies registered in Kenya and offshore, Muhoho is due to be receiving Sh38 billion every year until 2022 when his brother is expected to hand over power to a new president.

Earlier this week when she appeared before the Senate, Health Cabinet Secretary Sicily Kariuki was at pains to justify the fact each county will now be required to pay Sh200million from the previous forced agreement of Sh97.7 million.

The shocking details emerged after the Senate had summoned Health CS Kariuki who was unable.to give justification on the cost increase.

The multi-billion shilling medical equipment leasing plan launched by the government in February 2015 at the cost of Sh97.7 million was arbitrarily reviewed upwards to Sh200 million per county without re-tendering as required by public procurement laws. Neither was the consent of governors sought although it is counties making the forced remittances.

What makes the deal even more unpalatable is that it was imposed on counties by the National government which deducted the money at source in the Treasury despite health being a devolved function.

Even worse, the equipment lies idle in most counties due to lack of trained personnel to effectively use them on patients but the central government pays the billions to faceless agents of the five international companies that were initially single-sourced to supply the MEMS tender.

According to CS Kariuki, counties will pay Sh200 million each whether or not they use the equipment.

The five international firms included General Electric (GE) from the USA, Philips from the Netherlands, Bellco SRL from Italy, Esteem from India and Mindray Biomedical of China are all represented in Kenya by unknown entities which collect payment from government.

The coordinator of the deal, Muhoho Kenyatta, has maintained a studious silence over the controversial MEMS deal which is receiving top government facilitation outside laid down laws and procedures.

Some Senators have likened MEMS to Uhuru’s Anglo-Leasing Scandal, inference to multi-billion single sourced security contracts where widespread fraud through non-delivery and overpricing during the reign of former President Mwai Kibaki.

The idea behind the one sided MEM scheme was to meet the country’s need for accessible and affordable specialised healthcare with leased deal to the county governments for a period of seven years from 2015.

Initially counties were forced to pay Sh97.7 million each, but this has now been unilaterally doubled to Sh200 million annually.

Health CS Sicily Kariuki is due to appear before a senate panel on in the coming week to further explain the status of the equipment and the nature of the lease. From the look of things, the payment is irreversible.

Earlier this month, ANC leader Musalia Mudavadi demanded that Director of Public Prosecutions Noordin Haji order fresh investigations into the scheme which he termed a huge scandal that continued to burden counties with massive debts while exploited the sick. The DPP has not reacted to Mudavadi’s statement.

But the importance of the deal is underlined by how much protection the state has offered CS Sicily Kariuki amidst her involvement in the NYS scandal. The identity of the local agents representing the multinational suppliers is also top secret.

Kariuki is the custodian of the MEMS scheme and is receiving protection from the highest levels of government. Not even the combined effort of the 47 strong member Council of Governors could defeat the determination of central government to implement this deal.

Earlier this year, Muhoho’s name was mentioned in the sugar imports scandal. A joint Trade and Agriculture house committee was told that Protech Investment, whose directors are Muhoho Kenyatta and John Stuart Armitage, was on the list of more than 100 private firms that last year irregularly imported duty-free sugar, some of which were later found to be tainted with mercury and unfit for human consumption.