The Kenya Medical Practitioners Pharmacists and Dentists Union (KMPDU) is demanding a transparent investigation into what they say is grand corruption within the health sector.

While launching a 2022-2024 report, the union took issue with awarding tenders to foreign companies, which they accused of supplying substandard equipment resulting in massive losses of much-needed funds.

The report which focussed on Vamed, an Austrian subsidiary of Fresenius, a major German healthcare multinational, suggests impropriety with the accused of receiving millions of shillings from the Kenyan government as funding to supply equipment to Kenyan health facilities

According to the 2022-2024 report by KMPDU and other stakeholders, there is very limited information on projects handled by the multinational in Kenya.

In the report, Vamed projects in Kenya were previously financed by the Austrian Ministry of Finance with no apparent disclosure that it was a 13 per cent shareholder in the company.

“Without assessing public health needs in local communities there is no public information on how equipment supply contracts were negotiated another healthcare worker said I can confirm that no one in my county knows the value of the project or how much was spent on any of the particulars, they were just handed keys for the maternity,” said KMPDU Secretary-General Dr Davji Atellah.

According to KMPDU, the national government has been pushing county governments to procure medical equipment without revealing the cost implications.

“Many counties, Elgeyo Marakwet that we did the project in, Baringo, Makueni and Nandi County all indicate where the project was done but there was no knowledge of the county governments on anything or any information about these projects,” said Atellah.

“We just came to realise through the investigation abroad that some of these funds are actually debts that the government is taking.”

The union says that the budget for healthcare in the country remains the reason for poor health services. the report shows that the healthcare sector allocation has been decreasing since 2019.

KMPDU is demanding transparent investigations into who is behind the contracts, who profited and whether the projects are benefiting Kenyans.

Vamed in a rejoinder dismissed the findings in the case study saying: “We are convinced that the mentioned allegations are unsubstantiated as they are based on incorrect assumptions and disproven by the facts.”

It said that all projects in Kenya have been implemented through concessional financing as part of development finance adding that the soft loans are used exclusively to support commercially non-viable projects that improve the lives of the general public in the recipient countries.