A report by Auditor General Nancy Gathungu has revealed that Kenya Medical Supplies Agency (KEMSA) procurement scandal saw Kenya lose Ksh.2.3 billion.

The report  tabled to the Senate on Wednesday shed light on how KEMSA violated several laws, leading to the staggering losses

The reports notes that for instance, some of the companies that were awarded multimillion tenders had only been around for a few months.

The auditor noted some of the companies that were awarded the contract were established in January and February this year, pointing to possible collusion.

The report also reveals fraud in procurement and collusion between Kemsa bosses and the companies that were awarded multi-billion shilling contracts.

The Senate heard that companies that had been around for less than year were awarded contracts without having the necessary qualifications to supply medical equipment.

According to the auditor, Kemsa over procured items with Sh6.3 billion which are still lying idle in its warehouses.

If the items are sold at the current market prices, Kemsa will only recover Sh4 billion, leading a whopping loss of Sh2.3 billion.

The report shows that Kemsa illegally and irregularly diverted monies meant for UHC to purchase Covid-19 items without approval of the Ministry of Health.

In recommendations to the Senate, the office of the Auditor General calls government agencies to conduct probe to establish criminality in the procurement process and collusion between the management and companies awarded the contracts.

The same report also wants KEMSA to withhold any further processing of COVID-19 related claims until an independent audit is done.