By PSCU
The Principal Secretary of Medical Services, Harry Kimtai, apprised the National Assembly Committee on Public Debt and Privatization on the status of three loans acquired by the government for use by the State Department.
The committee led by Balambala MP, Abdi Shurie, wanted to know the status of the first loan, UA 14 million that was acquired back in April 2022 between the government and the Africa Development Fund and was meant to finance phase one of the East Africa Centre of Excellence for Skills and Tertiary Education in Biomedical Sciences Project.
On this loan, Mr. Kimtai told the members that the loan would ensure full operationalization of the Centre, disclosing that the progress in implementation is within the stipulated timelines.
The second loan that the committee was interested in is a EUR 19.37 million loan that was acquired on 12th September 2022 between the government and Mihuzo Bank Europe N.V.
This second loan was meant to finance a project called the Turnkey Medical Equipment and Refrainment Package Contract-Upgrading Maternal and New Born Care Units.
According to the PS, the objective of the project was to refurbish, equip and train staff at 20 health facilities and to reduce maternal and infant mortalities by creating a conducive delivery and nursing environment for mothers and newborns.
“The project started on 13th September 2023 and is anticipated to terminate in September next year and it is being implemented across 12 counties; Nyandarua, Embu, Samburu, Elgeyo-Marakwet, Nyamira, Nyeri, Murang’a, Kisii, West Pokot, Narok, Makueni and Kwale,” Mr. Kimtai disclosed.
While reacting to the information, the members asked the PS how the beneficiary counties were selected.
Mr. Kimtai responded that a survey on the Kenya demographic was conducted and the benefitting counties were found to be facing most of the challenges to be addressed by the project.
The PS distanced his State Department from the final loan, a USD 100 million (Facility B) and EUR 93 million (Facility C) acquired on 5th April 2022, between the government and Citibank, N.A, London Branch, Rand Merchant Bank, the Standard Bank of South Africa Limited and the Standard Chartered Bank, was meant to finance the phase one of the East Africa Centre of Excellence for Skills and Tertiary Education in Biomedical Sciences Project.
“I wish to state that the State Department has no knowledge of the above loan facility as per the records availed from our finance department. I have so far requested the National Treasury for clarification of the same. I shall revert to the Committee once I receive the response,” he said.
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