The Sh443m oxygen plant tender suffocating KNH

By Newsflash Correspondent

For decades, the Kenyatta National Hospital (KNH) has stood as a national symbol of hope, offering life-saving care to millions of Kenyans.

Its wards have carried the sickest patients, while its doctors performed near-miracles despite limited resources.

Today, however, the institution finds itself at the centre of a scandal so severe it has left not only the hospital, but the entire country, gasping — both for answers and, ironically, for oxygen. At the heart of the controversy are two individuals: Susan Mochache, the former Health Principal Secretary, and Leonard Njeru, a little-known contractor with rising political ambitions.

Together, they are accused of orchestrating a procurement scheme that has left KNH without a functional oxygen plant, despite taxpayers already footing nearly Sh300 million. The scandal this week claimed its first casualty when KNH CEO Dr Evanson Kamuri was suspended. His bank accounts holding Sh48 million were frozen and his properties in Nairobi, Kirinyaga, and Kajiado placed under investigation.

A dubious procurement trail

The scandal traces back to 2022 at Afya House, headquarters of the Ministry of Health. Investigators allege that under Ms Mochache’s watch, the Ministry, rather than KNH, decided to procure the hospital’s new oxygen generation plant — an unusual move, since KNH, a semi-autonomous body, had its own procurement capacity.

Leonard Njeru’s firm, Biomax Africa Limited, eventually won the Sh443.6 million tender despite lacking experience in large-scale medical projects. According to an Ethics and Anti-Corruption Commission (EACC) report, Biomax’s documents were falsified, and the tender committee failed to carry out due diligence.

KNH’s then-CEO, Dr Kamuri, was summoned to witness the contract signing but soon found himself in a difficult position. Since KNH was not the procuring entity, it had no authority to execute or supervise the project. Seeking clarity, KNH consulted the Public Procurement Regulatory Authority (PPRA), which confirmed that the Ministry remained accountable for the contract. An addendum was later signed to enjoin KNH to the deal, but EACC investigators have since questioned the legality of this step. Despite at least three extensions granted to Biomax, the oxygen project remains stalled.

Millions spent, no oxygen plant

Biomax Africa, working with French manufacturer Novair Group, was contracted to deliver a fully operational oxygen plant. Instead, two years on, KNH is still dependent on private suppliers. Between July 2023 and February 2024 alone, the hospital spent more than Sh168 million on liquid oxygen — costs that could have been avoided if the plant had worked.

The contractor cited inadequate power supply and unsuitable installation sites for delays, even as oxygen purity levels from the plant dropped to as low as 60 percent, far below the required 95 percent for medical use.

KNH tried to salvage the project by purchasing a generator, but the plant remains non-functional.

Meanwhile, Mr Njeru is preparing to contest the Mbeere North parliamentary seat on a United Democratic Alliance (UDA) ticket, even as the project under his company’s watch continues to fail. Ms Mochache has since left the Ministry following President Ruto’s reshuffle. The case is now before the Director of Public Prosecutions, with investigators probing how a Sh443 million project meant to save lives turned into one of the biggest procurement scandals in Kenya’s health sector.