Kenya Threshold Program

Kenya and the U.S. signed a $12.7 million MCC Threshold Program agreement focused on reducing public sector corruption by overhauling the public procurement system, with a specific concentration on health care procurements throughout the supply chain.  A new public financial management reform strategy, which includes a public procurement component, is being implemented by the Government of Kenya and supported by a coordinated group of donors to reduce opportunities for corruption.  The Kenya Threshold Program supports Kenya’s broader reform efforts and complements other donor efforts.

  • Signed:
    March 23, 2007
  • Total Grant Value: $12,723,000

The Government of Kenya has identified the Ministry of Health and its medical supplies procurement and delivery body, the Kenya Medical Supplies Agency (KEMSA), as being particularly susceptible to waste, fraud and abuse throughout the procurement and delivery process.  Through the following activities, the program will also focus on strengthening transparency and accountability in the health sector to reduce opportunities for corruption.

  • Strengthen KEMSA’s procurement capacity and accountability.
  • Improve supply chain management of public health resources.
  • Establish capacity within the Ministry of Health to monitor KEMSA’s procurement function and assess compliance.
  • Strengthen the supervision of medical supplies delivered to rural health facilities.

A 2005 “Independent Procurement Review,” conducted jointly by Kenya and the European Union, identified several critical problems with the current procurement system.  Among the weaknesses identified were weak oversight institutions, a lack of transparency, poor linkages between procurements and expenditures, delays and inefficiencies and poor records management.  The Kenya Threshold Program is designed to address each of these weaknesses through the following activities.

  • Strengthen the capacity of the newly created Public Procurement Oversight Authority through enhanced technology, exchange programs, and staff training.
  • Develop and roll out an e-procurement system in five key ministries — Office of the President, Education, Roads and Public Works, Energy and Health.
  • Develop and implement new procurement regulations and guidelines.
  • Institute proper records management protocols for public entities.

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