Tycoons in Sh200bn counties' medical kit deal unmasked

By Newsflash Writer

President William Ruto has launched a Sh200 billion plan to modernise county referral hospitals by installing high-tech medical equipment under the National Equipment Support Programme (NESP).

The scheme awards contracts to seven companies — a mix of influential Kenyan tycoons and foreign investors — to supply and maintain diagnostic and treatment machines, from CT scanners to dialysis units, for seven years.

Unlike the earlier Managed Equipment Services (MES) model, which drew payments from county budgets, NESP will be funded through the Social Health Authority (SHA) under a fee-for-service arrangement. Contractors will install, maintain, train medical personnel, supply consumables, and offer ongoing technical support. Beneficiaries of the contracts include Sunview Medipro International, Caring International, Megascope Healthcare, Angelica Medical Supplies, Melco Kenya, Obaidulla Contracting, and Provered Technologies.

Sunview Medipro, fully owned by UAE-backed investor Abdiweli Mohamed Hassan, will install CT scanners in two hospitals per county. Hassan is also the developer of Eastleigh’s Business Bay Square Mall. Caring International, linked to Kenya National Chamber of Commerce and Industry president Dr Erick Rutto, will supply MRI machines, while Megascope Healthcare, owned by former KNCCI boss Richard Ngatia, will deliver ultrasound units. Angelica Medical Supplies, majority-owned by businesswoman Mary Wanja Ibutu, will provide dialysis services. Foreign-owned Melco Kenya, Obaidulla Contracting, and UAE-based Provered Technologies will supply X-ray machines.

From MES controversies to a new service model

Sunview Medipro CEO Sirat Amin says installations have begun, with five referral hospitals, including Mandera, Kerugoya, Wajir, and Kisumu’s Jaramogi Oginga Odinga facility, already equipped with advanced scanners. The first phase will deliver 98 CT scanners, two mammogram machines, 400 operating theatres, and 400 laboratories nationwide. The equipment will support cardiology, oncology, neurology, pulmonology, urology, and gastroenterology services.

The NESP replaces the MES programme launched in 2013 under the Jubilee government, which leased specialised theatre, renal, and radiology equipment to 98 hospitals through five firms, including GE East Africa, Philips East Africa, Bellco SRL, Esteem Industries, and Debra Limited. MES faced criticism over inflated costs, poor planning, and counties paying for idle machines. By June 2024, MES had cost the government Sh57.048 billion, with contracts extended to 2026 following a 2022 review.

Ruto’s administration says the NESP model avoids past waste by charging only for actual use, a shift aimed at ensuring value for money and continuous access to life-saving medical technology in all 47 counties.