Strategic Plan 2019 – 2024

“Your Partner in Healthcare”

Strategic Plan 2019 – 2024

 QUALITY POLICY
KEMSA shall ensure and guarantee the quality of health products and technologies
that we procure, warehouse and distributeto our customers by adhering to statutoy
and regulatory requirements and international quality management systems.

We shall consistently meet and endeavour to exceed customer requirement

and expectations in order to support the delivery of quality healthcare to all Kenyans.

DR. JONAH MANJARI

CHIEF EXECUTIVE OFFICER

ii Strategic Plan 2019 – 2024

CONTENTS

CHAPTER 1: INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Background Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Situational Analysis: Operating Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3 Rationale for developing the Strategic Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.4 Strategic Planning Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

CHAPTER 2: STRATEGIC DIRECTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.1 Establishment of KEMSA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.2 Vision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.3 Mission Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.4 Core Values. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.5 Core Functions (Goals of Operation). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.6 KEMSA Organogram to Deliver the Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

CHAPTER 3: STRATEGIC ANALYSIS/ENVIRONMENTAL SCANNING. . . . . . . . . . . . . . . . . . . . 16

3.1 Best Practices in Health Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.2 Internal Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.3 External Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.3.1 Political Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.3.2 Economic Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.3.3 Social-Cultural Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.3.4 Technological Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.3.5 Ecological Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.3.6 Legal/Regulatory Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.4 SWOT Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

CHAPTER 4: STRATEGIC ISSUES, OBJECTIVES AND STRATEGIES. . . . . . . . . . . . . . . . . . . . . . 28

4.1 KHSSP 2018-2023 Health Products and Technologies Key outputs. . . . . . . . . . . . . . . . . . . . . . 28
4.2 Strategic issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
4.3 Strategic Pillars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
4.4 Strategic Objectives and Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

CHAPTER 5: STRATEGY IMPLEMENTATION FRAMEWORK. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

5.1 Implementation Matrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
5.2 Annual Action Planning: Institutionalizing and Operationalizing Strategy . . . . . . . . . . . . . . 49

Strategic Plan 2019 – 2024 iii

 5.3 Budgeting, Resource Implications and Mobilization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
5.4 Risk Analysis and Critical Assumptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

CHAPTER 6: STRATEGY CONTROL, MONITORING AND EVALUATION . . . . . . . . . . . . . . . . . 55

6.1 Control, Responsibility and Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
6.2 Monitoring and Evaluation Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
6.2.1 Performance Monitoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
6.2.2 Performance Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
6.3 Linking M&E to Performance Management and Staff Appraisal . . . . . . . . . . . . . . . . . . . . . . . 58
6.4 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

iv Strategic Plan 2019 – 2024

LIST OF FIGURES

Figure 1: Policy Framework for Health: Orientations, Principles, Objectives,..........................................2

Figure 2: Trends in medical insurance coverage 2003 to 2018.....................................................................5
Figure 3: Trends in Health Allocations as a Percentage of Government Budget at both Levels of
Government.......................................................................................................................................6
Figure 4: Strategic Planning Process: Continuous Monitoring and Evaluation.........................................9
Figure 5: Performance of KEMSA 2014-2019 Strategic Plan.....................................................................16
Figure 6: Organogram to Deliver the Strategy.............................................................................................19

Strategic Plan 2019 – 2024 v

LIST OF TABLES

Table 1: KHSSP Objectives and their implications on KEMSA.................................................................... 2

Table 2: Key political factors and their implication on KEMSA.................................................................18
Table 3: Trends in budget allocation to health by National and County governments............................19
Table 4: Key economic factors and their implication on KEMSA..............................................................19
Table 5: Key socio-cultural factors and their implication on KEMSA.......................................................20
Table 6: Key technological factors and their implication on KEMSA........................................................21
Table 7: Key ecological factors and their implication on KEMSA..............................................................21
Table 8: Key Legal/Regulatory factors and their implication on KEMSA.................................................22
Table 9: Strengths and weaknesses..................................................................................................................22
Table 10: Opportunities and Threats...............................................................................................................22
Table 11: Stakeholder Mapping and Analysis: External Stakeholders.......................................................23
Table 12: Stakeholder Mapping and Analysis: Internal Stakeholders........................................................26
Table 13: Implementation Matrix....................................................................................................................27
Table 14: Strategy Implementation Budget....................................................................................................34
Table 15: Strategy Monitoring Tool.................................................................................................................51
Table 16: Strategy Evaluation Tool..................................................................................................................57

vi Strategic Plan 2019 – 2024

ABBREVIATIONS AND ACRONYMS
AOP Annual Operational Plan
BCM Business Continuity Management
CEO Chief Executive Officer
CIDP County Integrated Development Plan
CISCM Chartered Institute of Supply Chain Management
COG Council of Governors
CPD Continuous Professional Development
EML Essential Medicines List
EMMS Essential Medicines and Medical Supplies
ERM Enterprise Risk Management
ERP Enterprise Resource Planning
FBOs Faith Based Organizations
GOK Government of Kenya
HMIS Health Management and Information System
HOD Head of Department
HPTs Health Products and Technologies
HRH Human Resources for Health
HSS Health System Strengthening
HW Health Workforce
ICC Inter-Agency Coordinating Committee
ICT Information and Communication Technology
ISO International Organization for Standardization
KEML Kenya Essential Medical Lists
KEMSL Kenya Medical Supplies List
KEMCL The Kenya Essential Medical Laboratory Commodities List
KEMSA Kenya Medical Supplies Authority
KEPH Kenya Essential Package for Health
KHP Kenya Health Policy
KHSSP Kenya Heath Sector Strategic and Investment Plan
KFDA Kenya Food and Drugs Authority
KII Key Informant Interview
KISM Kenya Institute of Supply Chain Management
KNBS Kenya National Bureau of Statistics
KPI Key Performance Indicators
KQM Kenya Quality Model
LIMS Laboratory Information Management System
M&E Monitoring and Evaluation:
MEAL Monitoring, Evaluation and Learning
MCP Medical Commodity Program
MEDS Mission for Essential Drugs and Supplies
MHE Material handling equipment
MOH Ministry of Health
NCDs Non-Communicable Diseases
NGOs Non-Governmental Organizations
NMTC National Medicines & Therapeutic Committees
NHIF National Hospital Insurance Fund

Strategic Plan 2019 – 2024 vii

NHSSP National Health Sector Strategic Plan
NQCL National Quality Control Laboratory
PESTEL Political, Economic, Socio-cultural, Technological, Ecological and Legal
PMS Performance Management System
PPAD Public Procurement and Asset Disposal
PPB Pharmacy and Poisons Board
PPPH Public Private Partnership for Health
SCM Supply Chain Management
SDG Sustainable Development Goal
SMART Specific, Measurable, Achievable, Realistic and Time bound
SOP Standard Operating Procedure
SOW Scope of Work
SP Strategic Plan
SPSS Statistical Package for Social Sciences
SSD Supplementary Service Division
SWOT Strengths, Weaknesses, Opportunities and Threats
TBA To Be Agreed (Advised)
TOR Terms of Reference
TWG Technical Working Group
UHC Universal Health Coverage
USAID United States Agency for International Development
WB World Bank
WHO World Health Organization

viii Strategic Plan 2019 – 2024

GLOSSARY OF TERMINOLOGIES
Business Contingency Plan: Pre-defined action plan that is implemented if an identified risk occurs
1. Enterprise Risk Management: Assessment (mapping) of possibility of a specific risk occurring,
analysis of the impact in the event that the specific risk occurs and management of activities to
provide the highest mitigation of in the event of such occurrence to ensure the lowest expenditure
of project resources
2. Issue: This is a risk that has become a reality due to a trigger occurring in real time. Issues must
be resolved before their negative impact get fully realized
3. Order Fill Rate: The percentage of order items that KEMSA manages to supply in full.
4. Order Turn Around Times: This is the time taken from the time a customer order is received by
KEMSA to the time the order is delivered to the customer
5. Risk: An uncertain future event or condition that, if it occurs, has a negative impact on the Au-
thority’s objectives.

Strategic Plan 2019 – 2024 ix

FOREWORD

I am delighted to present to you the KEMSA Strategic Plan 2019–2024 which outlines the vision
and the strategic direction that the Authority has identified to enable it realize its mandate.
The process of formulating this  Strategic Plan has provided KEMSA the opportunity to
take stock of achievements and challenges, to determine the strategic direction in light of
opportunities and threats ahead.

The strategic pillars and objectives attest to our commitment to achieve excellence in our core
functions and mandate. We are committed to achieve excellence in procurement, warehousing,
and distribution of quality, affordable Health Products and Technologies (HPTs) to public
health facilities.

In implementing this strategic plan, KEMSA will make a significant contribution towards the
attainment of Universal Health Coverage (UHC). KEMSA’s role in the success of UHC is the
provision of quality, accessible and affordable HPTs.
Many thanks go to the Government of Kenya, through the Ministry of Health, for its continued
support in the development of this Strategic Plan. I wish to recognize the support accorded
to KEMSA by development partners and USAID in particular for the financial support in the
development of this strategic plan.

I would also like to take this opportunity to offer my sincere gratitude to all who have
contributed towards the formulation of this strategic plan. On behalf of the KEMSA Board
of Directors, I hereby call upon all stakeholders to continue with their support to see this
strategic plan to the end of its successful implementation.

Sen. Kembi-Gitura, MGH

Chairman Board of Directors
Kenya Medical Supplies Authority

x Strategic Plan 2019 – 2024

ACKNOWLEDGEMENT

This strategic plan was developed through the commitment and support of many individuals
and institutions. We would like to extend our sincere gratitude to USAID for their financial
support, which was necessary for the successful development of this strategic plan. We are
indebted to our customers at the National and County level who provided feedback on the
performance of KEMSA over the last five years. The feedback offered us ideas and insights
on the strategic direction that KEMSA should pursue between 2019 and 2024. We also ac-
knowledge the immense support received from the Ministry of Health, Council of Governors
(CoG), and the County Executive Committee Members (CECMs) for Health.

We are grateful to all our stakeholders including development partners who gave valuable
input into the strategic plan development process. Our special thanks go to the KEMSA
Board of Directors, management and staff for the insight and encouragement throughout the
process. We would like to give special thanks to the Consultants, Ansoffs Consulting Ltd
who guided development of this strategy.

Finally, we would like to recognize the invaluable support from KEMSA’s technical team
who were involved at all stages of developing the plan. To all of you who supported the
development of this strategic plan in a small or big way we say - “Thank You!”

Dr Jonah Manjari
Chief Executive Officer
Kenya Medical Supplies Authority

Strategic Plan 2019 – 2024 xi

EXECUTIVE SUMMARY

Health Products and Technologies distributors and wholesalers in Africa face a complex en-
vironment due to changing consumer demands, stringent government regulations, sub-stan-
dard products and counterfeit medicines. However, HPTs supply chain organizations are
considered a lifeline to the healthcare and life-saving industry since they are required to de-
liver quality products to the right facility at the right time. The changing consumer demands
may likely have an impact on performance of HPTs supply chain organizations and therefore
require strategic and operational responses by these organizations.

This Strategic Plan provides Kenya Medical Supplies Authority as an HPTs supply chain
organization, with a road map of direction towards the delivery of quality services to
the customers. The development of this strategic plan adopted a participatory approach
that ensured the involvement and consultations with the staff of Kenya Medical Supplies
Authority, stakeholders and members of the Board of Directors at different stages. The plan
outlines the vision, mission, core values, strategic objectives as well as targets and action
plan. The strategic plan has six chapters that include an Introduction; Strategic Direction,
Strategic Analysis, Environmental Scanning; Strategic Issues, Objectives and Strategies,
Strategic Implementation Framework and Strategy Control, Monitoring and Evaluation.

Vision Statement
A world class provider of health supply chain solutions that save and transform lives

Mission Statement
To provide reliable, affordable and quality health products, technologies, and supply chain
solutions for improved health care.

Core Values
1. Customer Focus
2. Diversity and Inclusivity
3. Innovation
4. Integrity
5. Professionalism

Strategic Objectives
The organization has identified several themes as a guide in its development. To address
these strategic themes, the organization has formulated a number of strategic objectives and
activities:
(i) To ensure a robust financial framework for concrete financial base
(ii) To increase market share from 70% to 90%.
(iii) To have robust physical facilities, internal business processes, systems and infrastrutural upgrades
that support business growth
(iv) To develop and strengthen strategic alliances and partnerships for improved health supply chain
systems
(v) To develop a dynamic, transparent and accountable governance structure

xii Strategic Plan 2019 – 2024

Control, Implementation, Monitoring and Evaluation and Reporting
The 2019-2024 Strategic Plan has been designed to facilitate the realization of KEMSA vision
and mission and support accountability in the delivery of the Authority’s mandate. Since
monitoring and evaluation is a critical part of the service delivery process it is necessary to
cascade the strategic plan to directorates, departments, sections and individuals. This cascading
will then define individual performance targets more sharply. The health sector Monitoring
and Evaluation framework will guide the monitoring and evaluation of the Strategic Plan.
The Finance & Strategy directorate will undertake the monitoring and evaluation through the
Planning and Continuous Improvement department. The monitoring and evaluation reports
will be presented to the Senior Management and the Board through the Chief Executive
Officer quarterly. This will ensure continuous monitoring of progress made by divisions and
departments towards targets.

Budget
Implementation of the report is projected to cost a total of Ksh 20,734,400,000 over the five-
year plan period. Implementation will be within a framework of an Implementation Matrix
(IM) which gives a detailed list of activities deliberately selected to realize strategies that feed
into the key objectives. The IM also gives the Key Performance Indicators, the Output, The
annual targets and responsible office.

The plan further includes Annual Work Plans divided into quarters for the next five years
and an Enterprise Risk Management Matrix that gives an analysis of possible risks and
mitigations.

Strategic Plan 2019 – 2024 xiii

“KEMSA is dedicated to provide reliable, affordable, quality health products,
technologies and supply chain solutions for improved health care”
xiv Strategic Plan 2019 – 2024
CHAPTER 1: INTRODUCTION

1.1 Background Information

The Government of Kenya, through the Vision 2030; Medium Term Plan III, envisions a mid-
dle income industrialized country by the year 2030. The vision states that the role of the health
sector is to provide “equitable and affordable health care at the highest standards.” The Constitu-
tion of Kenya, 2010 states that among other rights, every citizen has a right to life, right to the
highest attainable standard of health including reproductive health and emergency treatment.
The Constitution established 47 County Governments and devolved health service delivery
to these governments. County governments manage all aspects of health, including county
health facilities and pharmacies, ambulance services and promotion of primary health care.

Indeed, Sustainable Development Goals No. 3 reads; Ensure healthy lives and promote wellbeing
for all at all ages thereby thrusting the prominence of citizen’s health to the forefront of respon-
sibilities for all governments.

As the government agency mandated to procure, warehouse and distribute HPTs to public
health facilities at both levels of government, KEMSA is in a unique position to deliver this
constitutional promise to the people of Kenya even as Kenya strives to meets its obligations
to the global community.

The health sector policy and strategic direction is guided by the Kenya Health Sector Strategic
and Investment Plan (KHSSP) 2013 – 2018 and the Kenya Health Policy 2014 – 2030. KHSSP
has set “better access to health services” and “improved quality of service delivery” as two desir-
able outputs and has identified the health workforce, infrastructure development and health
products as the critical inputs. Specifically, the Kenya Health Policy has set the following
objectives:
(i) Eliminate communicable diseases.
(ii) Reduce and reverse rising burden of NCDs.
(iii) Reduce the burden of violence and injuries.
(iv) Provide essential health care.
(v) Minimize exposure to health risk factors.
(vi) Strengthen collaboration with health related sectors.

The Kenya Health Policy further indicates in its policy framework that HPTs, the mainstay
of KEMSA’s mandate, is among the high priority policy investment areas (policy orientation)
which will operate to influence outcomes (policy objectives) (Figure 1). KEMSA, therefore,
will play a pivotal role in the health sector.

Strategic Plan 2019 – 2024 1

Figure 1: Policy Framework for Health: Orientations, Principles, Objectives, and Goal

Source: The Kenya Health Policy 2014 – 2030

The above objectives have direct implications on KEMSA, as shown in Table 1 below.
Table 1: KHSSP Objectives and their implications on KEMSA
Objective Implication on KEMSA
KEMSA must supply the HPTs required to meet this
(i) Eliminate communicable diseases.
objective

(ii) Reduce, and reverse rising burden KEMSA must step in to supply the HPTs that may be
of NCDs. used to ease the effects of the NCDs
(iii) Reduce the burden of violence and KEMSA must be able to supply high quality first aid
injuries HPTs
KEMSA must supply the HPTs required to provide
(iv) Provide essential health care.
essential health care

2 Strategic Plan 2019 – 2024

 (v) Minimize exposure to health risk KEMSA required to support facilities by supplying
factors. protective materials such as gloves
(vi) Strengthen collaboration with This is required of KEMSA as a key health sector
health related sectors player

1.2 Situational Analysis: Operating Context

Kenya has made key achievements in Health Products and Technologies (HPTs) during the
life of the KHSSP 2014-2018. Kenya Essential Medicines List (KEML) and Kenya Essential
Medical Supplies List (KEMSL) have been reviewed and updated. The Kenya Essential Med-
ical Laboratory Commodities List (KEMCL) was developed in 2019. The National Medicines
and Therapeutics Committee (NMTC) was reconstituted and the guidelines for medicines
and therapeutics prepared. To strengthen procurement and supply systems in the public
health sector, the following two significant changes that have impact on KEMSA were made:
1. KEMSA was capitalized in 2013 and therefore capacitated to guarantee supply of HPTs
to all county health facilities;
2. The KEMSA Act that establishing it as an Authority was enacted in 2013.

The first change enabled KEMSA to expand its facilities and therefore enhance its operations.
The second change raised the profile of the Authority by granting it semi-autonomy status
from its earlier status of being an agency of the Ministry of Health. It also moved KEMSA
from a push system of supplying health facilities to a more responsive pull system.

In March 2019, the KEMSA Act was amended through the Health Laws (Amendment) Act,
No. 5 of 2019 to make the Authority the only point of call for procurement of HPTs by all pub-
lic health service providers. This amendment states that a national or county public health
facility shall, in the procurement and distribution of drugs and medical supplies, obtain all
such drugs and medical supplies from the Authority subject to: —
(a) the drug being duly registered by the Pharmacy and Poisons Board; and
(b) the drugs and medical supplies meeting the standards of quality and are efficacious as
authorized by the Pharmacy and Poisons Board.
The Government of Kenya (GOK) is committed to implementing Universal Health Coverage
(UHC), as one of her Big Four (4) Agenda, towards socio-economic development that ensures
all individuals and communities in Kenya have access to the quality essential health services
that they need without suffering financial hardship. To achieve UHC, HPTs must reach pa-
tients with their safety and quality guaranteed.

In the long run, UHC is expected to bring health and development efforts together and con-
tribute to poverty reduction as well as building solidarity and trust, aspirations that are also
enshrined in the government development blueprint – the Kenya Vision 2030. A UHC road-
map was developed to guide the implementation of the UHC agenda in the health sector and
the country at large. The pilot phase, being implemented in the year 2018/2019, targets Mach-
akos, Kisumu, Isiolo and Nyeri counties, with a view to draw lessons necessary for scaling it
up to cover the entire country. KEMSA is envisioned to provide a total solution to ensure that
there are no supply gaps during implementation of UHC for the entire country. This strategic
plan aligns strategies, key activities and timelines towards realization of UHC.
KEMSA supply chain activities encompass a range of functions, including product selection,
forecasting, quantification, procurement, warehousing, and distribution, among others. The
Kenya Medical Supplies Authority Act No. 20 of 2013 gives the Authority greater autonomy
Strategic Plan 2019 – 2024 3
to run its affairs and prescribes the following functions under Section 4 (1):
1. Procure, warehouse and distribute drugs and medical supplies for prescribed pub-
lic health programmes, the national strategic stock reserve, prescribed essential health
packages and national referral hospitals.
2. Establish a network of storage, packaging and distribution facilities for the provision of
drugs and medical supplies to health institutions.
3. Enter into partnership with or establish frameworks with county Governments for pur-
poses of providing services in procurement, warehousing, distribution of drugs and
medical supplies.
4. Collect information and provide regular reports to the national and county governments
on the status and cost-effectiveness of procurement, the distribution and value of pre-
scribed essential medical supplies delivered to health facilities, stock status and on any
other aspects of supply chain system status and performance which may be required by
stakeholders.
5. Support County government to establish and maintain appropriate supply chain system
for drugs and medical supplies.

The Health Laws (Amendment) Act, 2019 No. 5 of 2019 amended the KEMSA Act, 2013 by
introducing Sub-section (3) of Section 4 that states as follows:
“(3) A national or county public health facility shall, in the procurement and distribution of
drugs and medical supplies, obtain all such drugs and medical supplies from the Authority
subject to—
(a) the drug being duly registered by the Board (Pharmacy and Poisons Board); and
(b) the drugs and medical supplies meet the standards of quality and are efficacious as
authorized by the Board (Pharmacy and Poisons Board).

Kenya Medical Supplies Authority Act, 2013 and The Health Laws (Amendment) Act, 2019
serve to grant autonomy and to clarify that the role of KEMSA in the public HPTs supply
chain is significant and critical.

As the standard of living improves, healthcare providers face rising expectations for more
and better quality services. Increased access to information and technology has led to changes
in demand as more customers are using digital solutions to place orders and obtain product
information. Subsequently, for distributors and wholesalers of HPTs to gain a competitive
advantage in Africa, they need to have the ability to innovate and adapt to new regulatory
standards and the distribution requirements of products.

A leading health service provider needs to have efficient processes to deliver affordable and
quality treatment in a cost-effective way. The service provider also needs a deep understand-
ing of the industry and its trends so that the provider can advise its stakeholders, and identify
and collaborate with other strategic players to deliver better solutions to the patients. Addi-
tionally, medicines sold in Africa tend to have a number of quality issues, like ingredients
whose concentrations are either too high or too low, existence of impurities and poor quality
ingredients as well as incorrect labelling in some cases. The presence of these issues jeop-
ardizes the health of a population and, KEMSA is positioned to bridge this quality gap by
ensuring safety HPTs and specifically efficacy of medicines.

4 Strategic Plan 2019 – 2024

There are several emerging issues relating to health finance that have guided the strategic
outputs for this strategic plan. These include:
i. Low Health insurance coverage: According to Kenya Household Health Expenditure and
Utilization Survey (KHHEUS) by Ministry of Health (2018), the population with health
insurance cover was 19.9 % (Figure 2). Although there has been improvement in the
health insurance coverage from 9.7% in 2003 to 19.9% in 2018, the reality is that there
remains low penetration of health insurance among the population.

For KEMSA this implies that majority of Kenyans (80%) depend on personal savings, so-
cial support through fundraisings or other forms of borrowing in order to access health
services. These are largely unreliable sources of funds and it therefore means that ma-
jority of Kenyans remain vulnerable in the event of healthcare needs. This majority will
be beneficiaries of the UHC when rolled out throughout the country as a result of which
there will be more pressure on KEMSA to provide timely supplies to the public health
sector.

Figure 2: Trends in medical insurance coverage 2003 to 2018

Figure 4: Strategic Planning Process: Continuous Monitoring and Evaluation Source: MoH 2018 -
KHHEUS

ii. No real increases in health expenditure: Government allocation for health is low, thus there
is need for additional mechanisms to increase domestic allocations. According to the
Ministry of Health, the highest combined (County and National Governments) expendi-
ture between was 7.8% in 2012/2013 the lowest was 5.5% in 2013/2014 (Figure 3). These
allocations to the health sector by both national and county governments were way be-
low the Abuja Declaration of at least 15% of government budgets being directed to the
health sector. This implies that on the overall, funding directed towards the health sector
was only about 50% of the Abuja Declaration.

Strategic Plan 2019 – 2024 5

Figure 3: Trends in Health Allocations as a Percentage of Government Budget at both Levels of Gov-
ernment Source: National and County Health Budget Analysis FY 2016/17 by the Ministry of Health

iii. Funding landscape: Even though donor support to the health sector accounts for almost
one third of total current health expenditure, a significant proportion of the financing is
off-budget and targets few major diseases. It is also noted that donor support is declin-
ing in the country.
iv. There has been inefficient management of the multiple funding sources and dependence on donor
and out-of-pocket funding: The current health financing architecture is quite complicated,
with multiple sources of funding contributing to a meshwork of financing agents that are
purchasing services in multiple and overlapping manner.
v. High inequities in current pooling and management arrangements: Statistics from the Ken-
ya Household Health Expenditure and Utilization Survey as quoted in Kenya Health
Financing System Assessment, 2018 (MOH, 2018) revealed that households in the poor-
est wealth quintile predominantly sought healthcare from public health centers (51.4%)
compared to households in the richest quintiles (40%). This could be attributed to de-
liberate government policies to improve the access of the poor to primary healthcare in
public health facilities. Similarly, the dominance of wealthier or employed individuals
among private hospital users is largely due to the factors that facilitate access to private
care, especially access to medical insurance. In Kenya the government has greatly made
strides in correcting this by enabling the general population access to medical insurance
though NHIF.
vi. Reforms in the National Health Insurance Fund: From 2013, the National Health Insurance
Fund (NHIF) has undergone structural changes to make the institution more effective
and responsive to customer needs. In addition to structural changes the following chang-
es have also been instituted; -
(a) Reviewing contributions rates;
(b) Expanding the benefit package to include out-patient cover and new packages re-
lated to addressing non-communicable conditions;
(c) Instituting strategies to enroll more members; and
(d) Implementing the insurance subsidy programme among the poor and vulnerable

6 Strategic Plan 2019 – 2024

 groups. In the FY 2016/17, NHIF provided insurance cover to 160,422 households
under the Health Insurance Subsidy Programme (HISP) and 41,666 Older Persons
and Persons with severe Disabilities (OP & PWSD).
vii. Push for the ring-fencing of health revenues and budgetary allocations: During the Kenya
Health Forum held in March 2018 the health sector stakeholders identified health sector
funding as a priority. The Forum therefore recommended the review the Public Finance
Management Act to ensure the ring-fencing of health revenues and budgetary alloca-
tions at both levels of government.
viii. Enactment of The Health Laws (Amendment) Act, 2019: Grants the Authority leave to be the
official supplier of HPTs to the national and county health facilities.
ix. Existence of a defined benefit package: In 2018 the Ministry of Health released the UHC
Essential Benefits Package (UHC - EBP) which defined the essential benefits package.
The package is the set of health services that all people resident in Kenya are entitled to
receive as part of the road to universal health coverage. Financing its provision has, how-
ever, been left largely to the decisions financing agents. The agents have then supported
the elements of UHC that they prefer to finance. As a result, there is uneven investment
in the capacity to provide the different UHC -EBP services.
x. High cost of health services: In Kenya, 28% of the people who reported being sick did not
seek care (KHHEUS, 2018). The high cost of services is one of the major barriers that
accounted for up to 19.4% of those who did not seek care in 2018. Further, 4.9% of house-
holds were at risk of impoverishing because of expenditure on health care depleting
household savings and were at risk of falling into poverty (KHHEUS, 2018). According
to WHO, a household faces “catastrophic” health costs if health expenditure is greater
than or equal to 40% of a household’s non-subsistence income.

The 2017 Health Act, Kenya Health Policy (2014-2030) and norms and standards (e.g. HPTs,
HRH, and infrastructure) are offering overall guidance to the health sector in the delivery
of quality care. Counties have established their health service management structures.
Devolution has created an enabling environment for counties to employ more staff & HPTs
which will enhance the health worker population ratio especially in hard to reach areas.

The development and functioning of the LMIS and the use of WhatsApp to follow-up stock
levels have helped to monitor and improve visibility of available stocks. All these have
contributed to increased visibility of essential medicine and supplies at all service delivery
levels.

UHC is one of the Government’s Big Four Agenda and, to achieve it, the security of Health
Products and Technologies is critical because no services can be rendered without the
necessary HPTs. Security of HPTs will require effective and efficient public health supply
chain that can deliver quality HPTs in a reliable and cost-effective way. An increased scope of
commodities is also necessary to support the reviewed KEPH which focuses on responsiveness
to the population needs especially expanding primary care services. Such services include
screening laboratory commodities, as well as coverage for more non-communicable diseases.
In addition, price reduction strategies, prudent commodity management and rational use
will play a greater role in ensuring access to HPTs.

Strategic Plan 2019 – 2024 7

1.3 Rationale for developing the Strategic Plan
The broad objective of this Strategic Plan is to set overall goals and strategies for the Author-
ity’s business and to develop an implementation plan to execute the strategy. This strategic
plan sets out the direction and ensures that KEMSA works towards a common goal – align-
ing resources for optimal results, prioritizing financial resources and building a competitive
advantage. Since its inception as an authority in 2013, KEMSA has operated with a formal
strategic plan this strategic plan being the second five-year plan.

The ending strategic plan (2014-2019) paves way for another five-year Strategic Plan that will
guide the Authority’s operations from 1st July 2019 to 30th June 2024. The Strategic Plan is
aimed at aligning KEMSA with the devolved system of government in light of the country’s
health sector context and the imminent roll out of the UHC. The overall goal is to ensure that
public health facilities optimally receive adequate health products and technologies. KEMSA
has to re-configure its business model by putting systems and structures in place to ensure
it had the requisite capacity and versatility to operate in a vastly different consignment
distribution model. The role of KEMSA’s national and regional depots is to ensure availability
of reliable, quality, and affordable health products & Technologies as per the national essential
commodities lists for pooling by the counties and public health facilities and institutions.
The rationale for this document includes, but not limited to, helping KEMSA to:
- Build stronger relationships with county governments and the wide variety of stakeholders through
participatory engagement.
- Have a strategic direction with a clear road map.
- Build teamwork, cohesion, and expertise amongst its staff.
- Bring coherence to different parts of the organization, ensuring that the operations of KEMSA are
pulling in the same direction.
- Mobilize and prioritize resources to achieve the Authority’s mission.
- Have sustainable growth and increase stakeholders’ value for money.
- Have firm presence and guarantee competitiveness in the market.
- Ensure stakeholders know where KEMSA wants to be in the next 5 years.
- Create a responsive and commercial culture throughout the organization.

1.4 Strategic Planning Process

The success of any organization does not come by chance; it is a result of consistent and focused
hard work by Board members, management and the entire staff. Strategic planning involves
stepping back from the day-to-day operations and asking where the business is headed and
what its priorities should be. Strategy is essential in providing corporate direction and focus
through specifying how the Authority moves from its present position to its desired future.
It is clear that KEMSA seeks to create a Strategic Plan that meets its stakeholders’ needs and
expectations in light of the market realities and trends. The development of the strategic plan
was highly participatory. The following terms of reference provided responsibilities for the
consultant in the development of this strategic plan: -
(i) Critically analyze its current performance through evaluation of its governance, institutional,
relational, business approach and processes.
(ii) Describe and document its desired future performance to meet the demands of the county gov-
ernments and other stakeholders under the devolved system of governance.

8 Strategic Plan 2019 – 2024

(iii) Coordinate development of clear strategic objectives and investment areas for the strategic peri-
od based on the description of the desired future.
(iv) Determine resource requirements to implement the plan: costed by objective and investment
areas.
(v) Organize and facilitate subsequent workshops for further elaboration of the strategy (relating to
identification of priorities, developing the results chain, and theory of change).
(vi) Coordinate development of annual implementation matrix (plan) to execute the strategic plan
in phases with clear milestones and timelines. The plan will include key activities that mitigate
against strategic risks identified.
(vii) Coordinate development of a n d review the current risk statement and risk appetite
(viii) Coordinate development of a Monitoring & Evaluation framework.

In order to achieve these objectives, a robust interactive methodology was used with set
milestones to be achieved against corresponding timelines. This was made possible through
analyzing and understanding of the mandate, functions, and policies of KEMSA; analyzing
the current organizational structure in order to give a snapshot of how KEMSA departments
interface. In conducting this assignment, the consultant used systems thinking approach to
planning which has been proven to deliver results in sustainable ways. The approach raised
key systems thinking questions like; Where are we today? Where do we want to be? How do
we get where we want to be? How will we know when we get there? What will/may change
in the environment during our journey of getting where we want to be? What risks do we
foresee? For the identification of the Authority’s priority areas and to determine its strategic
objectives, some steps were followed, as summarized below.
(a) The first step of the strategic planning process was to conduct desk review and to collect
information from key stakeholders. Data collection tools (questionnaires and interview
guides) were developed and used to thoroughly review various aspects of KEMSA as an
organization. This step helped in creating the vision and mission statements as well as
core values. This phase of the process allowed KEMSA Board and Management to clarify
what the Authority is trying to achieve (vision) and articulate why it exists (mission).
Throughout the planning processes, the context within which KEMSA operates and how
the future is likely to unfold under the changing environment were taken into consider-
ation.
(b) The second step involved environmental scanning and intensive strategic analysis,
touching on political, economic, socio-cultural, technological, ecological and legal (PES-
TEL) factors. It also included identification of strengths, weaknesses, opportunities and
threats (SWOT), and both internal and external stakeholder analysis. Careful stakeholder
mapping was undertaken to determine the stakeholders’ roles in the strategic planning
process for early buy-in and successful implementation. This was an intensive exercise
which identified the key areas of KEMSA operations that may need targeted resources
as well as opportunities or opposing environmental factors that could affect strategy
implementation.
(c) The third step focused on strategic gap analysis to answer the question: “Where are we
compared to where we want to be?”  This part of the process looked at KEMSA vision
which was guided by the analysis of where the Authority wants to be by June 2024, com-
paring this with where the Authority currently is. The analysis was done in light of the
strategic issues evident in KEMSA.  All areas were identified and targeted for strategy
through the gap analysis process. The fourth step was grouping the strategic issues into
thematic areas and developing both strategic objectives and corresponding strategies.
The planning process adopted offers KEMSA an opportunity for periodic reviews.
Strategic Plan 2019 – 2024 9
This Strategic Plan is expected to be inspirational and valuable to all KEMSA stakeholders.
Strategy implementation process is continuous and adopts constant monitoring and taking
corrective actions. In addition, as KEMSA grows and changes, so will the various strategies.
Existing strategic issues will change and new ones will emerge during the plan period. Figure
4 constitutes part of the continuous process of improving the Authority’s operations in an
effort to attain and exceed organizational strategic objectives and strategies.

ENVIRONMENT STRATEGY STRATEGY STRATEGY

SCANNING FORMULATION IMPLEMENTATION MONITORING &
EVALUATION

1.5 Review of KEMSA 2014-2019 Strategic Plan

In 2014, KEMSA released the five-year KEMSA Strategic plan 2014 -2019. The expiring Stra-
tegic Plan laid out the vision, mission, goals and priorities of KEMSA for the five years of
its operations. This was the first strategic plan after devolution of the country’s governance
structure. After three years of implementation of the plan, the Authority carried out a mid-
term review of the plan to assess the progress made in the implementation of the plan and
document whether the Authority was achieving the set objectives. Key focus areas of the
review were the systematic analysis of operation data for various outputs and outcomes;
analysis of the budgets and finances and analysis of the implementation arrangements.
The Midterm review noted that major progress was made in the area of warehousing con-
struction, procurement and sales. Although progress was made in strengthening the Medi-
cal Commodity Program (USAID–MCP) through provision of critical inputs, there remained
need to strengthen intra-sectoral collaboration. The review also noted areas in which KEMSA
was lagging behind and these were: debt collection; procurement of brands and specialty
products; development of regional distribution centers; preparation of accurate demand fore-
casting; and decline of profits from core business.

In the 2014-2019 Strategic Plan, KEMSA had identified four strategic outcomes as the critical
success factors in achieving its corporate mission. They incorporate all of KEMSA’s opera-
tions, from supply chain to financial management and human resources. The Plan comprised
strategic objectives are logically organized and aligned with these four strategic outcomes as
summarized below:
Overall Goal: Expand market share, enhance customer satisfaction and strengthen KEMSA’s
financial performance and sustainability
Outcome 1.0: Demand for KEMSA commodities and services increased
SO 1.1: Develop and strengthen strategic alliances and partnerships
SO 1.2: Increase market share in existing markets
SO 1.3: Develop new markets for existing products
SO 1.4: Broaden product range
SO 1.5: Enhance commercial performance
SO 1.6: Improve marketing communication
SO 1.7: Strengthen the supply chain management capacity for county and facilities
SO 1.8: Improve customer retention
SO 1.9: Reposition SSD as an SBU and build its capacity
SO 1.10: Strengthen debt management

10 Strategic Plan 2019 – 2024

Outcome 2.0: KEMSA maintains optimal stock levels
SO 2.1: Strengthen selection, demand forecasting and quantification
SO 2.2: Align procurement plans, processes and systems to customer demand
SO 2.3: Strengthen QA processes and systems throughout the supply chain
SO 2.4: Strengthen inventory management processes and systems

Outcome 3.0: Customer needs are met efficiently

SO 3.1: Strengthen customer service capacity
SO 3.2: Improve order processing and delivery
SO 3.3: Enhance inter-departmental collaboration and communication
SO 3.4: Improve operational performance management
SO 3.5: Improve customer relationship management
SO 3.6: Enhance national and regional presence

Outcome 4: KEMSA has in place a dynamic, efficient and sustainable institutional gover-
nance and management system
SO 4.1: Enhance KEMSA governance
SO 4.2: Enhance KEMSA human capital management
SO 4.3: Enhance KEMSA capitalization and financial management
SO 4.4: Strengthen enterprise risk management
SO 4.5: Develop capital and operational infrastructure to support KEMSA business
SO 4.6: Support KEMSA management systems, processes via automation and innova-
tion
SO 4.7: Strengthen corporate security management

KEMSA’s Performance Management framework revolved around the Authority’s strategy to

achieve its core strategic objectives. The Authority continued to use this framework as a plan-
ning, communication, and management tool. KEMSA’s goal feeds into the broader health
sector strategic objectives as stated in the Kenya Health Sector Strategic and Investment Plan
(KHSSP) that focuses on implementation of a broad base of health and related services which
will impact on health of persons in Kenya. KEMSA activities were defined at the impact,
outcome, output and input levels to assure a logical link across the sector. During Strategic
Plan Revision in May 2017 the following major changes that had taken place since the devel-
opment of the strategic plan were identified:
(i) Drought and prolonged health workers’ strikes leading to lower sales and higher stock levels
(ii) Enactment of the Public Procurement and Asset Disposal (PPAD) Act 2015. Some of the conse-
quences of this Act include: faster awarding due to discontinuation of tender committees; addi-
tional inflexibility as prices could not be varied within 12 months; more responsibility to head of
procurement and CEO; and implications on organizational structure
(iii) Awarding of the USAID/KEMSA MCP
(iv) Purchase of Embakasi Supply Chain Centre site
(v) Construction of Both Warehouse and Office Block at the Purchased site
(vi) Government Big 4 Agenda: UHC rollout

Strategic Plan 2019 – 2024 11

An initial review was carried out on the implementation of Year 1 and 2 strategic plan and a
final review was carried out as part of preparation of this plan. The activities were grouped
into three categories - “Fully Implemented”, “Partially Implemented” and “Not Implement-
ed”. These terms were equated to the following grades:
“Fully Implemented” = Good (70 to 100%), Very Good (>100 but <130%) or Excellent
(>130%)
“Partially Implemented” = Fair (50 but <70%)
“Not Implemented” = Poor (<50%)
The general implementation of activities was high, with 97% of the activities categorized as
either “Fully Implemented” at (69%) or “Partially Implemented” at (28%) (Figure 5).
Figure 5: Performance of KEMSA 2014-2019 Strategic Plan

Source: Internal Analysis of Performance of KEMSA 2014-2019 Strategic Plan

12 Strategic Plan 2019 – 2024

CHAPTER 2: STRATEGIC DIRECTION

2.1 Establishment of KEMSA

KEMSA transitioned from its previous status as the Kenya Medical Supplies Agency through
the KEMSA Act of 2013. The Act gave KEMSA greater autonomy to run its affairs with clearly
defined functions. The Act also ensured the Authority’s functions were in tandem with the
functions of devolved governments established under Article 176 of the Constitution and
Section 67 of the Health Act, 2017. The Act further provided a framework through which
KEMSA can collaborate and work with county governments. The Act mandates KEMSA to
plan, procure and distribute drugs and other medical supplies to public health facilities.

The Health Laws (Amendment) Act, No. 5 of 2019 amended the 2013 Act to provide
for collaboration between the KEMSA and County Governments. The Health Laws
(Amendment) Act further provides that national and county health facilities would refer to
KEMSA for their drug and medical supplies needs.

2.2 Vision

KEMSA intends to continue pursuing its current dream of “being a leader in innovative health
supply chain solutions that support better health service delivery”. The revised vision of the
Authority is :

“A world class provider of health supply chain

solutions that save and transform lives”.
2.3 Mission Statement

This statement of purpose expresses Authority’s reason for existence. The statement herein
below sets out KEMSA mission:

“To provide reliable, affordable and quality health

products, technologies, and supply chain solutions for
improved health care”.

Strategic Plan 2019 – 2024 13

2.4 Core Values

In pursuit of its vision and mission, KEMSA is guided by a set of core values that are shared and
practiced by its entire staff with a view to ensuring relevance and boosting motivation of all the
stakeholders

The Authority is committed to nurturing the following core values: -

1. Customer Focus: We pay attention to our customer needs. We value our customers and
treat them with dignity. We are passionate about customer delight.
2. Diversity and Inclusivity: We respect different views and cultures. We treat people fairly
and equally.
3. Innovation: We continuously look for and adopt creative ways of working to serve our
clients and sustainably improve KEMSA’s overall performance.
4. Integrity: We maintain high ethical standards, value honesty, accountability, transparen-
cy, and operate in ways that build trust within and outside KEMSA.
5. Professionalism: Our staff have the requisite knowledge skills and attitudes to maintain
highest levels of performance. We are committed to empowerment of our staff.
2.5 Core Functions (Goals of Operation)
Overall Goal: “Innovation and excellence for expanded market share, enhanced customer satisfac-
tion, strengthened financial performance & sustainability”
……. Your partner of choice .........
KEMSA’s areas of operation have been built on the thrust and experiences of the expiring
Strategic Plan. These areas of focus are actualized through key pillars (goals) that include:
1. Financial Stewardship: Strengthened financial and risk management.
2. Customer Focus: Efficiently meet Customer needs for enhanced customer satisfaction.
3. Internal Business Processes and Systems: Improved internal systems through digital
solutions.
4. Strategic Partnerships: Selection and cooperation with strategic partners for attainment
of mutually beneficial goals.
5. Leadership and Governance: Dynamic and efficient leadership, governance and manage-
ment.

14 Strategic Plan 2019 – 2024

2.6 KEMSA Organogram to Deliver the Strategy
The organization structure at the time of preparing the Plan was as shown in Figure 6. KEM-
SA will continuously carry out its staffing needs during the plan period to determine adjust-
ments, if any, needed for optimal performance and growth.

Strategic Plan 2019 – 2024 15

CHAPTER 3: STRATEGIC ANALYSIS/ENVIRONMENTAL SCANNING

Organizations that do not adequately adjust to meet their environmental challenges easily
experience problems posed by environmental changes. The need to chart out a path for the
future requires a critical evaluation of the key factors, both internal and external, that will
impact on the operations of the organization. Strategic analysis and environmental scanning
is critical in the strategic planning process as it clarifies the context within which an organi-
zation operates. This analysis was achieved through the process of identifying the organiza-
tion’s strengths, weaknesses, opportunities and threats (SWOT).
The SWOT analysis discussed in this chapter is presented under the following sub-head-
ings; best practice in pharmaceutical supply chain; internal analysis, external analysis and
stakeholder analysis. While the external and competitive environments have implications for
the organization in the form of opportunities and threats, the internal environment anchors
the organization’s strengths and weaknesses. The external environment comprises of devel-
opments in both the organization’s macro (remote) environment and the micro (immediate
operating) environment. The competitive environment describes the industry dynamics in
which the organization is competing.

3.1 Best Practices in Health Supply Chain

The HPTs sector plays a crucial role in economic growth and social welfare of any country.
In the present context of a health-conscious society, management of HPTs supply chains has
become more complex and requires the participation of different stakeholders. Examples
of such stakeholders are; HPTs manufacturers, wholesalers, distributors, service providers,
customers, information service providers, and regulatory agencies. Over the last decades,
increasing globalization and supply chain complexity have posed risks to pharmaceutical
safety. Ultimately, this safety concern has negatively affected businesses and, most
importantly, patients. Limited research is available in the area of HPTs supply chains, yet it
involves life-saving interest of human beings. In order to succeed in the global and volatile
market, strategic planning is very important. This plan aims to find the gaps in strategic
issues of supply chain management in the HPTs sector in Kenya.

Effective health supply chain management involves the procurement of raw materials,
conversion of these materials into finished products, inventory management, and the
distribution of those products. Like for any other industry, the effective supply-chain
management is particularly important for the pharmaceutical industry. The industry must
seek ways to reduce costs and maintain regulatory compliance and quality and safety
standards in addition to normal supply chain challenges.

The goal of the Kenya Health Policy 2012-2030 is to attain the highest possible standard of health
in a responsive manner. The overall objective the same Health Policy is to attain universal
coverage of critical services that positively contribute to the realization of the policy goal. The overall
objective of Kenya Health Policy 2012-2030 is in tandem with the third goal of the Sustainable
Development Goals which seeks to Ensure healthy lives and promote wellbeing for all at all ages.
The goal and overall objective of the Kenya Health Policy 2012-2030 therefore thrusts KEMSA
right into the centre of the Ministry’s efforts to realize the health sector policy.
The following common gaps are relevant to health supply chain organizations: -
(i) Global quality standards –possible counterfeit and substandard products from the chain
(ii) Inventory management

16 Strategic Plan 2019 – 2024

(iii) Development of new product portfolio
(iv) Process development
(v) Healthcare reforms and capacity planning
(vi) Network and plant designs
(vii) Throughput and development management
(viii) Outsourcing logistics activities – including reverse logistics
(ix) Implementation of e-business processes
(x) Performance management
(xi) Others include; -
(a) insufficient funding,
(b) lack of incentives for maintaining stocks,
(c) inability to forecast accurately,
(d) inefficient distribution systems and
(e) pilferage of medicines and other products from the health facilities for private
use, leading to the low availability of quality and affordable medicines that are
required especially in primary healthcare.

The effectiveness of KEMSA strategy depends mainly on the identified strategic issues.
Sustainable competitive advantage requires capabilities that provide enduring benefits
and are not easily copied by competitors. The health supply chain sector players should
benchmark their performance against other sectors and adopt similar best practices for
improved performance.

It is important to mention that health supply chain decisions are subject to considerable risks.
Health supply chain and its effective utilization under uncertain and dynamic environment,
is a major challenge for the HPTs sector. For KEMSA to successfully protect itself against
these risks, proactive supply chain security must deliver actionable intelligence to mitigate
those risks. In pharmaceuticals, the most serious consequences of risks are those that affect
patient safety. Adverse patient reactions can range from minor to as severe as death. Other
consequences include drug recalls, and stolen drugs can compromise accuracy of volumes of
the actual drugs consumed. In general, KEMSA operations can incur daunting costs, such as
revenue loss, recall costs, legal costs for damage to health or life and regulatory fines.

3.2 Internal Analysis

Key highlights per department/function:
Major achievements between 2013 and 2019 against the set targets.
Annex 3 gives a summary of achievements of the targets throughout the five years of the
completed Strategic Plan. The column headed Best Ever performance during the period gives
the achievement during the fourth quarter of the fifth year of the retired SP or the best ever
performance if fourth quarter of the fifth year is unavailable. The column headed Achievement
rating as a %age indicates the average achievement for each targets over the plan period for
zero-based targets or the maximum achieved over the plan period for cumulative targets.
The comments are grades based on the Performance Contracting Guidelines for the FY 2018/2019
for Semi-Autonomous Government Agencies (SAGA) (2017);
1. Excellent: Achievement ranging from 130% to 200% of the performance target;
2. Very Good: Achievement ranging from 100% to less than 130% of the performance
target;
3. Good: Achievement ranging from 70% to less than 100% of performance target;
4. Fair: Achievement ranging from 50% to less than 70% of the performance the target; and
5. Poor: Achievement ranging from 0% to less than 50% of the performance target.
Strategic Plan 2019 – 2024 17
Overall KEMSA achieved 88% of the retired plan. This was good performance.

3.3 External Analysis

KEMSA is operating in a highly dynamic environment that has the potential to impact on
its effectiveness and efficiency. These include political, economic trends, socio-political
dimensions, technological, ecological and legal (PESTEL) changes. KEMSA strategy provides
direction for the next five years to achieve the desired output against a changing environment.
A summary of some of the major developments in the external environment that impacts on
the Authority is provided below.

3.3.1 Political Factors

Kenya has two governance levels; National and County governments. Over the years, the
country has enjoyed political stability and goodwill, with support from national political
leadership. Table 2 provides a summary of significant political factors that will influence
KEMSA operations.

Table 2: Key political factors and their implication on KEMSA

Political Factor Implication on KEMSA
1. That Kenya has a stable political outlook, KEMSA services will continue being required
making expectations higher
2. Universal Health Coverage (UHC) as one of Will put pressure on KEMSA to raise speed of
the current government’s Big 4 Agenda response to customer orders and will increase
demand for HPTs and therefore revenue for
KEMSA
3. There is competitiveness and occasional May adversely affect health services delivery
power struggles at different political organs –
County versus National level; Senators versus
Governors, Members of National Assembly
versus Senators Members of County Assem-
bly Vs Governors.
4. Population movement to county headquar- Will create higher demand for health services at
ters – seeking employment opportunities the county headquarters which is easier to deliv-
er while reducing demand at the rural facilities
5. Civil rights organizations – an increase in KEMSA to be more accountable and responsive
clamor for more space not only to be heard,
but also direct involvement in some of the
national affairs
6. Occasional heightened tension or political- KEMSA will be prepared to use security forces
ly motivated violence driven by the political and vehicles/crafts for delivery of HPTs during
class based on negative ethnicity – leading to such times.
insecurity in some counties Pressure on KEMSA to respond to emergency
situations
7. Political instability in some neighboring May increase number of refugees and raise de-
counties mand for KEMSA services
8. Support to local manufacturing Procurement turnaround time may be reduced
9. Support to local suppliers through AGPO May affect quality of service and lead time

18 Strategic Plan 2019 – 2024

3.3.2 Economic Factors
Health care financing is a critical element of the social and economic development of a country.
An appropriate health financing mechanism will enable the health sector to ensure access
to quality and affordable health care. Kenya has been faced with the challenge of raising
adequate resources to finance its health system.

According to the National and County Health Budget Analysis FY 2016/17 by the Ministry
of Health, the total National Government budget allocation to health, has been an average of
3.87% over the three-year period between 2014/2015 and 2016/2017. During the same period
the total County Government budget allocation to the same sector has been an average of
23.37%. The average budget allocation, that is, the proportion of the combined discretionary
public budget allocated to health by national and county governments during FY 2016/17
was 7.6%. This was below the pre-devolution level of 7.8 percent and way below the Abuja
declaration target of 15% (Figure 2 under Situational Analysis: Operating Context).

Table 3: Trends in budget allocation to health by National and County governments

Year 2014/15 2014/15 2014/15 2015/16 2016/17
% of National Budget going to the Health Sector
7.8 5.5 7.5 7.7 7.6
from both National and County governments
Source: National and County Health Budget Analysis FY 2016/17 by the Ministry of Health

Table 4: Key economic factors and their implication on KEMSA

Economic Factors Implication on KEMSA
1. Government’s move towards supporting Wider pool of suppliers through AGPO
youth entrepreneurship to spur invest-
ment
2. The middle class GDP has been improv- (a) More of the population will seek services
ing and is expected to move even higher from faith based and private service pro-
viders which may increase demand for
KEMSA services.
(b) Contributions for NHIF will increase
creating a bigger pool of funds for re-
imbursement of facilities in the health
sector and therefore payment for KEMSA
services
3. The country has experienced improved Some of these improvements include roads, stan-
infrastructure dard gauge railway, fiber optics, facilities etc.
These make distribution, communication and lo-
gistics easier for KEMSA
4. Inflation rate has fluctuated between While there have been fluctuations it has been
5.72% in 2014 and 4.69% in 2018 peaking below 8% over the last six years indicating stabil-
at 7.7% in 2017. ity in the business environment for KEMSA
5. Occasional strikes by health sector em- Disruption of service which may lead to expiry
ployees clamoring for higher pay and of HPTs
better working conditions
6. Fluctuation of the Kenya Shilling result- Unpredictable cost of supplies and, therefore, in-
ing in fluctuations in exchange rates come for KEMSA
7. GDP grew from 4.9% in 2017 to 6.3% in Implies better availability of funds for the health
2018 sector and, therefore, KEMSA

Strategic Plan 2019 – 2024 19

 Economic Factors Implication on KEMSA
8. National Health Insurance Fund (NHIF) Impacts on KEMSA funding since service pro-
challenges in healthcare financing viders that depend on NHIF may not clear their
debts
9. Inequitable distribution of resources and a Pressure on KEMSA to deliver HPTs
rising Gini coefficient (index or ratio).
10. Favorable economic environment to grow KEMSA business also depends on business envi-
business ronment hence opportunity for growth
11. Increased health budget expenditure due Increased demand for KEMSA services
to UHC.

3.3.3 Social-Cultural Factors

In 2017, The Kenya National Bureau of Statistics indicated the total population of Kenya
stood at 46.7 million people up from 36.8 million in 2007 and 8.1 million in 1960, changing
462% during the last 50 years. According to KNBS, the population of Kenya represents 0.60%
of the world´s total population which arguably means that one person in every 168 people on
the planet is a resident of Kenya. The increasing population growth rate, currently at 2.7%,
impacts on both the supply and demand for resources and KEMSA’s operations.
Key socio-cultural factors and their impact on KEMSA are shown in Table 3 below.

Table 5: Key socio-cultural factors and their implication on KEMSA

Socio-cultural factors Implication on KEMSA
1. Effects of HIV/AIDS, Malaria, Tu- KEMSA must source for relevant and effective HPTs
berculosis and occasional outbreak of for existing diseases and be ready to respond effective-
communicable diseases ly upon an outbreak
2. Effects of non-communicable chron- High and increasing burden on KEMSA to respond to
ic conditions the management requirements of these conditions
3. High poverty levels High burden of diseases associated with low income
areas resulting in high demand for KEMSA HPTs
4. Literacy levels improving 1. Improved health seeking behavior
2. Better utilization of HPTs
5. Effects of globalization and a liber- Democratization brought about by liberalism cat-
al society with a myriad of moral alyzed by alternative media (social media) will call
issues and extremisms for KEMSA to be vigilant of any negative information
that may end up in social media

3.3.4 Technological Factors

The rapid and continuing growth and development of technology, especially information
and communication technologies (ICT), is beginning to have a major impact globally. This
provides KEMSA with great opportunities. The effective use of new technologies offers ways
in which the quality, effectiveness, and in particular, the flexibility of services can be im-
proved. It also provides for major improvements in organizational administration by using
intranet technologies to capture data, simplify processes and deliver support materials to
clients. The factors and their effects on KEMSA are captured in Table 4 below.

20 Strategic Plan 2019 – 2024

Table 6: Key technological factors and their implication on KEMSA
Technological characteristics Implication on KEMSA
1. Digital era with the opportuni- KEMSA may use this to ease payment process.
ties related to money transfer.
2. Use of enterprise resources plan- KEMSA already has an ERP among other management
ning (ERP) systems which needs revamping
3. Use of social media as a tool for KEMSA can use its social media accounts for informa-
communication and publicity tion, campaigns, or to “set the record straight” in the
event of negative publicity
4. The obsolescence of print media KEMSA to take this chance to manage its costs through
and literature policies that support to use of electronic media
5. Functioning of e-commerce KEMSA may need to embrace internet-based transac-
tions

3.3.5 Ecological Factors

The following are factors related to the environment that may affect KEMSA operations.
Table 7: Key ecological factors and their implication on KEMSA
Ecological Factors Implication on KEMSA
1. Laws on disposal of expired com- KEMSA must invest in compliant disposal methods
modities and the environment
2. Need for good corporate social Improve brand image through positive contribution to
responsibility undertakings society
3. Statutory requirements of renew- KEMSA may need to invest in renewable/sustainable en-
able energy ergy and other resources such as water
4. Climate change May hinder access to facilities during heavy rains

3.3.6 Legal/Regulatory Factors

Table 8: Key legal (Including regulatory and policy) factors and their implication on KEMSA
Legal/Regulatory Factors Impact on KEMSA
1. Impact of Constitution of Issues of health as a human right brings pressure to bear on
Kenya (2010) public health service providers and, therefore, to KEMSA
2. Provision of KEMSA Act, 2013 Grants KEMSA an expanded mandate and an opportunity
and Health Amendment Act to streamline its operations in terms of efficiency
of 2019
3. Compliance with labour laws KEMSA must ensure compliance with all the labour laws
4. Product regulations as pre- KEMSA must ensure compliance with the PPB Act Cap.
scribed by the Pharmacy and 244
Poisons Board

Strategic Plan 2019 – 2024 21

3.4 SWOT Analysis
KEMSA internal and external analyses revealed several strengths, opportunities and strategic
gaps. After interrogating the Authority’s internal and external environments, a list of the
main Strengths, Weaknesses, Opportunities and Threats was generated as follows:

Table 9: Strengths and weaknesses

Strengths Weaknesses
1. Effective leadership and good corporate 1. Stock outs of some HPTs
governance
2. Centralization of distribution leading to
2. Strong collaboration with Strategic part-
slow response rate.
ners.
3. Debt management
3. Efficient ICT Systems
4. Efficient distribution network and pres- 4. Long Turn Around Times of HPTs deliv-
ence across the country eries
5. Strong capital base
5. Sub-optimal performance in some inter-
6. Availability of quality, reliable & Afford- nal processes
able HPTs at KEMSA
7. Strong corporate brand 6. Limited product range.
8. Scalable business model

Table 10: Opportunities and Threats

Opportunities Threats
1. Universal Health Coverage (UHC) increas- 1. Political interference
ing demand for KEMSA goods and ser-
vices 2. Reducing support in the country from de-
velopment partners
2. Partnerships with development partners
3. Negative media publicity
3. Un-met market needs
4. Competition from industry players.
4. Enabling legal frameworks
5. Change in laws and regulations;
6. Delayed payments by some stakeholders
affecting service delivery

3.5 Stakeholder Analysis

Stakeholders are an integral part of the day-to-day operations of KEMSA. An understanding
of who the stakeholders are and what relationships exist between them and KEMSA is im-
portant because the satisfaction of their interests is key to the success of the Authority in the
achievement of strategic objectives. Tables 11 and 12 show the list of stakeholders and their
relationship with KEMSA.

22 Strategic Plan 2019 – 2024

 Table 11: Stakeholder Mapping and Analysis: External Stakeholders
KEMSA’s engagement strategy for removing obstacles
Stakeholder Stakeholder interest (s) and concerns (What do they want?)
and obtaining support from the stakeholder
1. Ministry of Health - Efficient distribution of medical suppliers - Constant engagements
- Availability of medical stocks - Regular progress reports

Strategic Plan 2019 – 2024

- Excellent Board and organizational performance - Maintaining prudence in utilization of the funds provid-
ed
- Board and Management adherence to policy and allocated
budget - Embracing performance excellence
- Efficient implementation of KEMSA’s programmes
- To be consulted on matters of product selection, quantifica-
tion & forecasting
2. Ministry of Fi- - Revenue Generation - Constant engagement & lobbying
nance/ Treasury - Excellent Board and organizational performance - Regular progress reports
- Board and Management adherence to policy and allocated - Embracing performance excellence
budget - Maintaining prudence in utilization of the funds provided
- Efficient implementation of KEMSA’s programmes
- Adherence to policies
- Engagement in validation of any donor engagement
3. Legislature (Sen- - Revenue generation - Regular progress reports
ate and Parliamen- - Efficient distribution of medical supplies - Embrace performance excellence
tary committees on
health, PIC) - Availability of medical stocks - Maintaining prudence in utilization of the funds provid-
ed
- Excellent Board and organizational performance
- Board and Management adherence to policy and allocated - Embracing performance excellence
budget - Lobbying to help them understand the KEMSA Act
- Efficient implementation of KEMSA programmes - More interactions, facility tours & sensitizations

23
- Maintaining integrity & good governance
24
KEMSA’s engagement strategy for removing obstacles
Stakeholder Stakeholder interest (s) and concerns (What do they want?)
and obtaining support from the stakeholder

4. Development - Better health services for Kenyans

partners (USAID/ - Adherence to procurement guidelines - Regular progress reports
PEPFAR/Global
Fund/World Bank/ - Adherence to laid down policies - Embracing performance excellence& efficiency
UNICEF - Efficiency and effectiveness in the implementation of donor - Maintaining prudence in utilization of the funds provided
funded programmes
- Regular interactions, facility tours & sensitizations
- Efficient and effective distribution of medical supplies
- Maintaining integrity & good governance
- Efficiency in the use of human and infrastructural
resources - Maintaining high standards of governance

- Skills transfer to KEMSA staff

5. Ministry of Devo- - Efficient distribution of medical suppliers - Regular meetings and engagements
lution (and COG) - Availability of stocks - Reports on Performance of counties in matters health
supply chain
- Affordability
- Facilitating meetings with County health CECs/Governors
- They have an interest in governance
forums
- Available information
6. County govern- - Efficient distribution of medical supplies - Constant engagement & consultations
ments - Availability of stocks - Efficiency in business processes
- Affordability of medical supplies - Constant information sharing
- Capacity building of staff - Improving order fill-rate and the order turnaround time
- Fair pricing of HPTs from KEMSA - Ensuring consistent availability of affordable, quality
Health Products and Technologies
- To be consulted on matters of product selection, quantifica-
tion & forecasting - Maintaining a ‘Last Mile’ reach of the county government
facilities
- Providing Commodity & Data management Training.

Strategic Plan 2019 – 2024

 KEMSA’s engagement strategy for removing obstacles
Stakeholder Stakeholder interest (s) and concerns (What do they want?)
and obtaining support from the stakeholder

7. National Referral - Efficient distribution of medical supplies - Regular reports on stock levels and pricing.
Hospitals Entice them to buy our commodities
- Availability of stocks
- Affordability of medical supplies - More interactions, facility tours & sensitizations

Strategic Plan 2019 – 2024

- Fair pricing of HPTs from KEMSA - They need to be standing members of Technical Working
Groups
- To be consulted on matters of product selection, quantifica-
tion & forecasting
8. Regulators (PPB, - High quality medical commodities
NQCL, KEBS, - - Regular reports on suppliers with sub-standard & coun-
- Adherence to policy
OAG, PPOA) terfeit commodities
- Efficiency in the distribution of supplies
9. Suppliers/ Trans- - Fairness in procurement processes - Efficient, automated procurement system
porters/consul- - Timely payment - Timely payment for supplies delivered
tants/contractors
- Efficiency in procurement process - Clear Service Level Agreements (SLAs)
- Regular interactions to maintain good relationships
10. Media: Local and - Accurate information about KEMSA - Regular media engagement forums for open interactions
regional - Efficient distribution of medical supplies - Prompt response to media enquiries
- Availability of medical stocks - Adopt a proactive, milestone-based media engagement
- Better health services for Kenyans’ approach
- ‘Last Mile’ reach of the county government facilities - Ensure compliance with laws and policies
- Consistent availability of affordable, quality Health Products - Be ethical in operations and ensure adherence to best
and Technologies practice in corporate governance
- Adherence to procurement guidelines - Regular social media campaigns to show case stories of
- Board and Management adherence to policy and allocated impact arising from KEMSA’s work told by beneficiaries
budget
- Efficiency and effectiveness in the implementation of donor
funded programmes
- Revenue generation

25
- Efficient implementation of KEMSA’s programmes
 Table 12: Stakeholder Mapping and Analysis: Internal Stakeholders

26
Stakeholder interest (s) and concerns (What do they KEMSA’s engagement strategy for removing obstacles
Stakeholder
want?) and obtaining support from the stakeholder
- Increased revenue generation - Regular reports from management
- Efficiency in the implementation of the strategic plan - Timely and well written board papers
- Adherence to policy and regulations - Constant engagement and information sharing by
KEMSA Board - Prudent use of finances management

- Effective stakeholder engagement - Frequent consultations

- Staff discipline
- Overall excellent performance of the Authority
- Shorter turnaround times of approvals by the Board - Constant engagement with the Board
- Regular policy guidance by the Board - Regular stakeholder consultation forums
- Employees to adhere to policies and regulations - Establish a listening mechanism to obtain regular input
- Team efficiency in the implementation of work plans from employees

- Prudent use of finances - Involve team leaders and employees in decision-mak-

ing
- Internal controls
- Implement a culture-change programme
Top Management - Risk management
- Implement a fair reward program
- High performance by teams and individuals
- Enforce a clear performance management system
- Efficient revenue generation
- Enforce employee discipline
- Effective stakeholder engagement
- Adopt electronic formats of internal communication
- Staff discipline e.g. WhatsApp Broadcast
- Efficient organizational culture - Implement a communication skills training pro-
gramme for the entire Authority

Strategic Plan 2019 – 2024

 Stakeholder interest (s) and concerns (What do they KEMSA’s engagement strategy for removing obstacles
Stakeholder
want?) and obtaining support from the stakeholder
- To be consulted and involved in decision making - Constant engagement with top management
- Efficient communication and cascading of information - Regular stakeholder consultation forums
from top management - Communicate work expectations clearly
- Real-time feedback so that they can effectively communi- - Cascade information from top management in real
cate to staff time to keep employees informed

Strategic Plan 2019 – 2024

- An efficient ICT infrastructure - Have regular review meetings with the entire team and
- Training opportunities with individual team members
- Job security - Establish a listening mechanism to obtain regular input
Assistant managers, Su- from employees and to understand their concerns
pervisors & team leaders - Welfare matters taken care of
- Involve employees in decision-making
- Career progression
- Find innovative ways to motivate employees
- Fair administrative action
- Undertake team building activities
- Enabling work environment - Jointly set clear targets and agree on performance eval-
uation
- Have candid one-on-one discussions with indiscipline
and/or non-performing employees
- Facilitate training in customer service skills, etiquette
and emotional intelligence
- To be consulted and involved in decision making - Regular internal capacity building activities,
- Efficient communication and cascading of information - Deliberate staff cohesion activities and casting the
from top management vision to ensure everyone is on the same page.
- Real-time feedback so that they can effectively communi-
- Enhance internal communication and information
cate to staff
cascading
- An efficient ICT infrastructure
- Training opportunities
Employees
- Job security
- Take care of welfare matters
- Have reliable transport
- Need for recognition
- Enabling environment

27
- Opportunities for career growth
- Fair administrative action
CHAPTER 4: STRATEGIC ISSUES, OBJECTIVES AND STRATEGIES

This part of the Strategic Plan identifies Strategic Issues that KEMSA has to address in order
to realize and experience its vision and mission respectively.

4.1 KHSSP 2018-2023 Health Products and Technologies Key outputs

The KHSSP 2018-2023 Health Products and Technologies Key outputs form the basis for the
formulation of strategic objectives and strategies for KEMSA. These key outputs are issues
that the Authority needs to deal with expeditiously and effectively in order to have impact,
grow and prosper.

The KHSSP 2018 – 2030 has the following Key Outputs for Health Products and Technologies.
These issues have been analysed and appropriate actions recommended for KEMSA to take; -
1. Increased capacity and access to all health commodities
2. Enhanced quality of all health commodities
3. Prudent management of health commodities.
4. Enhanced support supervision for health commodities

Key output 1: Increased capacity and access to all health commodities:

Key Action area:

(i) Increase budgetary allocation to KEMSA to enhance supply of essential HPTs to meet Universal
Health Coverage needs.
(ii) Expand HPTs list to incorporate new commodities e.g. commodities for chronic diseases such as
cancer chemotherapy medicines, protective wear for chemotherapy, dialysis commodities, labo-
ratory screening commodities, implants etc. in line with reviewed National Benefit Package for
Health NBPH.
(iii) Enforce compliance to guidelines in terms of purchasing, prescribing and dispensing of antimi-
crobials.
(iv) Streamline process of reviewing and releasing marketing authorization for new antibiotics that
address priority infectious diseases in the country.
(v) Negotiate medicine prices between the Ministry of Health and the pharmaceutical companies to
reduce the cost of medicines and other health commodities.
(vi) Ensure adherence to Section 155 of the PPDA Act 2015 that provides preference for local manu-
facturers to reduce cost of commodities.
(vii) Ring-fence health commodity funds at county level through review of the PFM Act 2012 and have
counties deposit commodity funds through KEMSA for drawing rights.
(viii) Make use of WHO intellectual property (TRIPS) provisions under the Industrial Property Act to
increase access to medicines and health commodities.

Key Output 2: Enhanced quality of all health commodities

Key Action Areas
(i) Conduct Good Manufacturing Practices (GMPs) inspections at manufacturing sites both locally
and externally.
(ii) Carry out quality control testing.
(iii) Intensify pharmacovigilance (reporting of poor-quality commodities and adverse reactions en-
hanced) including antibiotics.
(iv) Post-market surveillance for selected life-saving commodities, including antibiotics on a regular
basis.
28 Strategic Plan 2019 – 2024
(v) Improve end user storage capacities to support product quality by enhancing storage infrastruc-
ture, e.g. cold chain for vaccines; fridges and storage buildings;
(vi) Establish track and trace mechanisms for HPTs by establishing GS1 standards for HPTs. This will
improve patient safety regarding counterfeits, substandard and falsified medicines.

Key Output 3: Prudent management of health commodities

Prudent management of health commodities is required to minimize wastage through
pilferage and expiries.

Key Action Areas

(i) Continuous integrated capacity building for health commodity management for all personnel han-
dling health commodities.
(ii) Minimize percentage stock outs and expiries in health facilities.
(iii) Develop guidelines and training modules for antimicrobial stewardship programmes (ASP) in
hospitals and community settings to support appropriate use of antimicrobial agents.
(iv) Establishment of antimicrobial stewardship programmes in 47 counties and national referral hos-
pitals.
(v) Digitalize the commodity supply chain for efficiency.
(vi) Implement end-end visibility of the HPTs supply chains through value added networks (VAN).

Key Output 4: Enhanced supportive supervision for health commodities

Key Action Areas
(i) Supervision and monitoring on rational commodity use, stock management to enable redistribu-
tion of excess commodities across facilities within a region/county.
(ii) Support commodity security mechanisms at national and county level, e.g. Commodity Security
TWGs and ICCs.
(iii) Perform HPTs supply chain audits.
(iv) Provide mentorship for antimicrobial stewardship and antimicrobial resistance surveillance

4.2 Strategic issues

In order to achieve the above key outputs, KEMSA must initiate innovative strategies to
address the following critical strategic issues:
1. Affordability of Health Products and Technologies: KEMSA will put in place mecha-
nisms that will guarantee affordable HPTs.
2. Universal Health Coverage: KEMSA to ensure consistent availability of quality, afford-
able HPTs in line with the UHC benefit package.
3. Market Development: KEMSA will pursue untapped markets through market segmen-
tation, targeting and positioning.
4. Strategic Partnerships: KEMSA will pursue strategic partnerships with key stakeholders,
especially county governments and development partners. KEMSA will also strengthen
systems (upstream and downstream) as well as have real-time linkage and strengthened
partnerships with counties. In addition KEMSA, will synergize expertise and establish
joint ventures and increase representation at the county level.
5. Innovative Strategies: KEMSA will identify innovative approaches and best practices to
address emerging customer needs.
6. Order Management: KEMSA will identify strategies to streamline order processing for
improved order turnaround times and order fill rate.

Strategic Plan 2019 – 2024 29

7. Strategic Positioning Initiatives: KEMSA will develop strategies to position itself as the
Supplier of choice as well as employer of choice.
8. Internal Processes/systems & Supply Chain Operational Efficiency: KEMSA will de-
velop strategies to improve the effectiveness and efficiency of its internal processes.
9. Leadership and Governance: KEMSA will build capacity for growth and expansion; cre-
ate a positive corporate image; create a culture of continuous learning and improvement,
and ensure business continuity.
10. ICT (ERP) Capacity: KEMSA will invest in new value-adding technologies and innova-
tions available in the market.
11. Enterprise Risk Management: KEMSA will have a robust risk identification and mitiga-
tion framework as per the relevant standards.
12. Financial Stewardship and Management: KEMSA will put in place a robust accounting
and financial management system on credit management and resource mobilization.
13. Human Resource Management: KEMSA must implement strategies to attract and retain
talent to ensure continued business success.
14. Performance Management: KEMSA will put in place strategies to improve on com-
petitiveness, financial capacity; research & development; focus on organizational per-
formance and develop a mechanism for performance management and promote evi-
dence-based decision-making.
15. Customer Experience: KEMSA will develop strategies to enhance customer experience
through decentralization, product diversification and expansion.
16. Corporate Image: KEMSA will develop strategies that enhance the KEMSA brand.

4.3 Strategic Pillars

The following strategic pillars were derived from the above strategic issues:
1. Financial Stewardship
2. Customer Focus
3. Internal Business Processes and Systems
4. Strategic Partnerships
5. Leadership and Governance

4.4 Strategic Objectives and Strategies

KEMSA will address each of the strategic pillar identified, in part 4.3 above, by achieving a
number of strategic objectives. The objectives provide a link between the strategic pillars and
the strategies that the Authority will employ in order to attain her mission and vision. Con-
sequently, for the period 2019-2024, KEMSA will work towards achieving the set objectives
through the identified strategies.

1. Financial Stewardship
Financial stewardship is the pillar that represents the care, planning, attention, and manage-
ment of the organizational financial resources and choices. 
Strategic Objective 1: To ensure a robust financial framework for concrete financial base.
Strategies:
1. Increase demand for KEMSA products.
2. Venture into new markets.
3. Increase revenue from supply chain services.
4. Share health supply chain expertise.
5. Enhance KEMSA capitalization from KES 8 Billion to KES 10 Billion.

30 Strategic Plan 2019 – 2024

 6. Develop and implement cost management mechanism.

2. Customer Focus
This pillar aims to orient KEMSA towards satisfying its customer needs.
Strategic Objective 2: To increase Market Share from 70% to 90%.
Strategies:
1. Increase demand for KEMSA Health Products & Technologies.
2. Enhance commercial performance.
3. Improve marketing communication.
4. Improve customer relationship management.
5. Strengthen the capacity of SSD.

3. Internal Business Processes and Systems
This pillar seeks to enhance efficiencies and effectiveness of KEMSA internal business pro-
cesses and systems.
Strategic Objective 3: To have robust physical facilities, internal business processes, systems
and infrastructural upgrades that support business growth.
Strategies:
1. Bi-annual Review of HPTs demand - strengthen selection, forecasting and quantification.
2. Develop and update appropriate products and specifications in collaboration with MOH
guidelines and customers.
3. Develop and implement facility HPTs consumption system.
4. Align procurement to forecasting system to meet customer needs.
5. Development capacity of health workers in the counties on HPTs data management.
6. Develop and implement supplier performance measurement mechanism.
7. Review SOPs and adopt e-procurements.
8. Advocate for enactment of new regulations for the PPAD Act 2015 to ensure the regula-
tions meet KEMSA’s needs.
9. Strengthen quality assurance processes and systems throughout the supply chain
(a) Microbiology Testing Laboratory and expand capacity of wet Chemistry Laboratory
(b) Transition to and maintain ISO 17025:2017 Accreditation
(c) Conduct ISO 9001:2015 audits and management reviews.
(d) Implement the Laboratory Information Management System (LIMS).
10. Improve operational performance management
(a) Strengthen inventory management processes and systems.
(b) Acquire optimal material handling equipment and additional quality assurance
staff.
11. Improve storage capacity, order processing and delivery
(a) Review and acquire internal distribution fleet.
(b) Divide the Country into four (4) regions to address issues of carrier capacity.
12. Ensure systems and process are supported through end-to-end automation and innova-
tion.

4. Strategic Partnerships
This pillar aims at establishing, developing and retaining strategic partnerships that will
enable KEMSA meet its goal.
Strategic Objective 4: To develop and strengthen strategic alliances and partnerships for
improved health supply chain systems

Strategic Plan 2019 – 2024 31

Strategies:
1. Develop and sustain transformational relationships with development partners
2. Leverage on the strength of local manufacturers and industry players.
3. Build and sustain partnerships with key stakeholders
4. Leverage on the engagement framework for the health sector as developed by the Min-
istry of Health

5. Leadership and Governance

Leadership and governance pillar is charged with the responsibility of steering the institute
towards its goals in a systematic, supportive way.

Strategic Objective 5: To develop a dynamic, transparent and accountable governance

structure

Strategies:
1. Provide effective oversight
2. Strengthen management systems for enhanced efficiency
3. Improve public opinion, attitude and behavior of key stakeholders
4. Strengthen Enterprise Risk Management and Strengthen BCM
5. Strengthen corporate security risk and disaster management programmes
6. Review Human Capital Management Systems
7. Provide assurance on internal controls, governance and risk management systems
8. Ensure sustainability reporting

32 Strategic Plan 2019 – 2024

CHAPTER 5: STRATEGY IMPLEMENTATION FRAMEWORK

KEMSA’s pursuit of its vision and attainment of its mission is hinged on successful
implementation of this plan. The strategies identified herein were prioritized based on the
magnitude of the underlying issues.

5.1 Implementation Matrix

KEMSA will continuously refer to the strategic plan as a roadmap because successful
implementation will eventually lead to greater impact and transformation. The strategy
implementation matrix is important as it will ensure that the Authority:
(i) Has a vision that motivates and draws its stakeholders towards contributing to Universal Health
Coverage, Vision 2030 and SDGs No. 3 (Ensure healthy lives and promote wellbeing for all at all
ages.)
(ii) Achieves the set Strategic Objectives hence contributing to improved health outcomes.
(iii) Mobilizes resources and ensures prudent use of the available limited resources.
(iv) Resolves a set of interrelated strategic issues and challenges in an intentional and coordinated man-
ner.
The implementation framework contains defined columns that guide the strategy
implementation namely:
(i) Strategic objectives: These are the proposed clear steps and accomplishments that KEMSA will
commit to achieve in order to realize its mission.
(ii) Strategies: These are broad approaches that KEMSA will employ in order to achieve the Strategic
objectives.
(iii) Activities: These are the planned actions with set targets selected to realize a given strategy.
(iv) Key performance indicators: These are the measurable parameters that are to be used as measures
of the extent to which the strategy has been achieved. These are given in the form of a particular
action completed or the extent the action will be completed. These have been given in the form of
time, number, or percentage when a particular action is completed.
(v) Expected outputs: These are measure of the immediate results after implementing a particular
strategy/activity. This should be tangible in order to be measurable.
(vi) Time frame: This indicates the time domain within which this strategy has to be completed.
(vii) Responsibility: The specific office responsible for a given action.

Strategic Plan 2019 – 2024 33

 Table 13: Implementation Matrix

34
Pillar 1: Financial Perspective
Strategic Objective 1: Ensure a robust financial framework for concrete financial base
Target/Time frame (by Plan Year)
By
Strategy Activity KPI Expected Output
Total-Plan Whom
1 2 3 4 5
Target
Increased No. of Fa-
Venture into new Implement Market No. of New market
cilities in New Mar- 20 20 20 20 20 100 DCS
markets. segmentation Segments on Board
kets from 200 to 300
No. of viable Partner- No. of viable Partner- DCS/
  1   1 1 3
Develop and sustain ships ships from 7 to 10X DFS/MCP
viable Strategic part- Increase sales of DCS/
nerships. Values of supply
Increase revenue supply chain services 100M 100M 100M 100M 100M 500M DFS/
chain services
from supply chain from 1.5B to 2B CEO/DLS
services Develop and Review
a costing Policy for 100% Cost Policy Full compliance with
50 100 100 100 DFS
Management of Stra- Implemented Cost policy
tegic Partnerships
Establish a Health
No. of Supply Chain Supply Chain Insti-
supply chain institute       1    1 DFS
Institute established tute established
of excellence-
Engage the Chartered
Share Health Supply Institute of Supply
Chain Expertise. Chain Management
Accreditation ob-
(CISCM) and Kenya Accreditation Certif-
tained from KISM or 1 DFS
Institute of Supply icate
CISM or both
Chain Management
(KISM) for accredita-
tion
Lobby with GOK/
Enhance KEMSA
MOH and Develop- Value of KEMSA Increase of Capital-
Capitalization from 1B 1B       2B DFS
ment partners to fund Capital ization
KES 8B to 10B
capital expenditure

Strategic Plan 2019 – 2024

 Pillar 1: Financial Perspective
Strategic Objective 1: Ensure a robust financial framework for concrete financial base
Target/Time frame (by Plan Year)
By
Strategy Activity KPI Expected Output
Total-Plan Whom
1 2 3 4 5
Target

Strategic Plan 2019 – 2024

Implement activity Budget Absorption 95%- 95%- 95%- 95%- 95%-
Budget savings 95%-100% DFS
based budgeting rate 100% 100% 100% 100% 100%
Cost Management Integration of dis-
No. Orders shipped
tribution of KEMSA Distribution Cost
out as integrated 80% 85% 90% 95% 99% 99% DO
EMMS & Program Savings
items
items

Pillar 2: Customer Focus

Strategic Objective 2: To increase Market Share from 70% to 90%.
Target/Time frame (by Plan Year)
To-
By
Strategy Activity KPI Output
1 2 3 4 5 tal-Plan Whom
Target
No. of New products
Increase Product range introduced
Increase Sales 200 200 150 100 100 750 SMM/PD
for HPTs Value of Sales for
HPTs
Increase the No. of spe- No. of New special-
Increase Sales 30 30 30 30 30 150 HSSD/PD
Increase the demand for cialized HPTs ized HPTs
KEMSA Health Prod- Improved aware-
ucts & Technologies ness of KEMSA
products,
Conduct continuous
No. of CMEs Con- Increase scientific SMM/
medical education 22 22 22 22 22 110
ducted knowledge, HSSD
(CME) sessions
Improved manage-
ment of KEMSA
commodities

35
36
Pillar 2: Customer Focus
Strategic Objective 2: To increase Market Share from 70% to 90%.
Target/Time frame (by Plan Year)
To-
By
Strategy Activity KPI Output
1 2 3 4 5 tal-Plan Whom
Target
Improved compli-
Develop the Capaci- No. of Trainings con- ance with Policies,
ty of KEMSA staff on ducted procedures, regu- 200 200 200 200 200 1000 HRM
product knowledge No. of Staff Trained lations and to the
best practices
Increased aware-
Carry out focused mar- No of campaigns
ness of KEMSA 27 27 27 27 27 135 PRCM
keting promotions conducted
products

No. of New Access

Establish & Strengthen Program Partnerships
DCS/
Strategic Market Access No. of Retained Ac- Increased Partner- 2 2 2 2 2 10
HSSD
Partnerships cess Program Partner- ships
ships

Increased under-
No. of Market Price
Conduct Market Price standing of the
Evaluations Conduct- 1   1   1 3 DCS
Research and surveys market & respond
ed
to it appropriately

Increased Sales and

Conduct sales storm % Sales Increase Improved debt 1 1 1 1 1 5 DCS
collection

Continuous identifica- No. of Qualified Pros-

Increased No. of SMM/
tion of Prospects and pects & Customers 20 20 20 20 20 100
customers HSSD
map them accordingly Mapped

Strategic Plan 2019 – 2024

 Pillar 2: Customer Focus
Strategic Objective 2: To increase Market Share from 70% to 90%.
Target/Time frame (by Plan Year)
To-
By
Strategy Activity KPI Output
1 2 3 4 5 tal-Plan Whom
Target

Strategic Plan 2019 – 2024

Improve debt recovery
through arbitration by
DCS/
COGs and Intergov- % Debt Recovered Reduced debts 500 500 500 500 500 2500
DFS/DLS
ernmental budget and
economic council(IBEC)

Introduce convenient No. of Payment Plat- Efficient modes of

2         2 DFS
payment platforms forms in use payment
Enhance commercial
Continuous Measure- >90% >90% >90% >90% >90%
performance Increased perfor-
ment of targets disag- Performance Rating of of of of of   DCS
mance
gregated by segment target target target target target

Conduct Quarterly No. of Performance

Continual Improve-
performance review Review Meetings 4 4 4 4 16   DCS
ment
meetings Conducted
Continuous engage- No. of Engagements
Increased support
ment with key stake- with Key stakehold- Continuous CEO
for KEMSA agenda
holders ers
Execute advertising and No. of Adverts & Improved corpo-
15 15 15 15 15 75 PRCM
publicity campaigns Campaigns rate image
Increased aware-
Redesign and regularly No of people visiting
ness of KEMSA             PRCM
Improve marketing update the website the website(Traffic)
activities
communication
1. No. of Social Media 1 1 1 1 1 5
Enhance social media Engagements Increased KEMSA
PRCM
marketing strategies 2. No. of Followers & brand awareness
Likes 10,000 12,000 14,000 16,000 18,000 18,000

37
38
Pillar 2: Customer Focus
Strategic Objective 2: To increase Market Share from 70% to 90%.
Target/Time frame (by Plan Year)
To-
By
Strategy Activity KPI Output
1 2 3 4 5 tal-Plan Whom
Target
Develop and execute
No. of CSR cam- Improved corpo-
corporate social respon-  4  4 4   4 4  20  PRCM
paigns rate image
sibility campaigns
Participate in relevant No. of Exhibitions &
Improved corpo-
healthcare exhibitions Trade fairs partici-  10 10  10 10 10 50  PRCM
rate image
and trade fairs pated
increased under-
No. of Media Engage- standing of the
Media Engagements  12 12  12  12  12  60  PRCM
ments KEMSA business
mandate
Improve marketing Publish quarterly
communication Increased knowl-
newsletter to deliver a
No. of Publications edge of KEMSA 4 4 4 4 4 20 PRCM
range of promotional
business
messages
Carry out media
engagement training Increased knowl-
No. of Key staff
for Key staff in sales, edge on media 100         100 PRCM
trained
customer service and management
technical staff
Involvement in relevant No. of conferences Increased product SSM/
professional confer- and seminars attend- knowledge and 4 4 4 4 4   HSSD/
ences & seminars ed market intelligence PRCM
Capacity Development 1. No. of Trainings
Improved manage-
on HPTs and data conducted
ment of HPTs at 6   6  6 6  6    DCS/BDC
management to KEMSA 2. No. of Health
facility level
customers Workers Trained
Improve customer rela- Complaints response
 100% 100% 100% 100% 100%
tionship management Strengthen customer rate and % resolved Customer satisfac- 100%
and and and and and CSM
feedback Management on tine tion and 90%
90% 90% 90% 90% 90%

Conduct customer satis- Customer Satisfaction Level of customer

1   1   1 3 CSM

Strategic Plan 2019 – 2024

faction survey Index satisfaction
 Pillar 2: Customer Focus
Strategic Objective 2: To increase Market Share from 70% to 90%.
Target/Time frame (by Plan Year)
To-
By
Strategy Activity KPI Output
1 2 3 4 5 tal-Plan Whom
Target

Strategic Plan 2019 – 2024

CSM/
Convene Bi-annual No. Stakeholders Improved customer
2 2 2 2 2 10 SSM/
stakeholders forums Meeting held relations
HSSD
Improved customer CSM/
Establish a call center Functional call center 1         1 
response rate ICTM
No of customer ap-
Improved customer CSM/
Improve customer rela- Customer service week preciation initiatives 1 1 1 1 1 5
relations PRCM
tionship management undertaken
Improved exter-
Carry out customer
nal and internal CMS/
service and communica- No of staff trained 200 200 200 200 200 1000
customer handling PRCM
tion training for all staff
skills
Introduce customer No. of recognized Improved customer CSM/
1 1 1 1 1 5
recognition programs customers/sessions loyalty PRCM
Recruitment of dedicat-
No. of technical staff % Increase in Sales
ed officers managing 3         3 DHR&A
Strengthen the capacity Employed volume
key accounts
of SSD
Procurement of appro- No of vehicles pro- % Increase in Sales
10         10 DHR&A
priate motor vehicles cured volume

Pillar 3: Internal Processes & Systems

Strategic Objective 3: To have robust internal processes and systems that support the business
Target/Time frame (by Plan Year)
Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target
 

Bi-annual Review of Number of re- 1. Updated demand PCIM/

Carry out reviews 2 2 2 2 2 10
HPTs Demand views done data SMM

39
2. Improved OFR
40
Pillar 3: Internal Processes & Systems
Strategic Objective 3: To have robust internal processes and systems that support the business
Target/Time frame (by Plan Year)
Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target
Develop and update New product Specifi-
cations Developed Percentage HPTs
appropriate products &
with updated New and updated
specifications In collab- Existing products 230 230 180 130 130 900 QAM
product specifica- product specifications
oration with MOH & Specifications Re- tions
Customers viewed
No. Counties 1. Accurate consump-
Develop And Imple- Develop And Imple-
(47) and Referral tion data report ICTM/
ment Facility HPTs ment Facility HPTs 23 30 53
hospitals (6) using SMM
Consumption System Consumption System 2. Improved OFR
system (Total 53)
Develop an automat- Procure an Automat- A functional Auto-
Improved Forecast for ICTM &
ed HPTs forecasting ed HPTs forecasting mated forecasting 1         1
HPTs PCIM
system System System
Develop capacity of
counties Health work- Roll out training on
No. of counties Accurate HPTs data ICTM/
ers on the use of HPTs the use of HPTs data 12 12 12 11 47
trained management SMM
data management management system
system
Develop and Imple-
PD/
ment supplier perfor- Percentage ap- Performing and Re-
Appraise suppliers 20% 40% 40% 100% QAM/
mance measurement praised Suppliers sponsive suppliers
ICTM
system
Advocacy for the Re- Advocacy for the
Reviewed Act and Reviewed Act and
view of PPAD Act 2015 review of PPAD Act CEO/PD/
operationalized operationalized Reg-  1 1 2
and Operationalization and operationalize DCS
Regulations ulations
of Regulations regulations
Construct or refurbish
Establish a Microbiolo-  A functional Micro-  A functional Micro-
functional Micro-Biol-  0 0  1 0 0 1  QAM
gy Testing Laboratory Biology Lab Biology Lab
ogy Lab
Transition to and main- Maintain ISO17025:2017 1
tain ISO 17025:2017 ISO17025:2017 Ac- Accreditation  Reliable Lab results 1 1 1 1 6  QAM
Accreditation creditation certificate certificate 1
Conduct ISO 9001:2015
Conduct ISO ISO 9001:2015 Au-  KEMSA QMS
audits and Management 1 1 1 1 1 5 QAM
9001:2015 Audits dit status reports compliant
reviews

Strategic Plan 2019 – 2024

 Pillar 3: Internal Processes & Systems
Strategic Objective 3: To have robust internal processes and systems that support the business
Target/Time frame (by Plan Year)
Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target
Percentage Pro-
Conduct Procure- curements done
ments through through e-Pro- efficient procurement PD &
1 1 2

Strategic Plan 2019 – 2024

e-Procurement curement platform processes  ICTM
Review of SOPs and platform
adopt e-procurement
Percentage Re-
QAM/
Review SOPS viewed SOPS in  Updated SOPs 1 1 2
HODs
place
Expand the wet chemis- Test 90% of the
Percentage HPTs  >90% of products range
try Lab and increase the products procured by 1 1 1 1 4 QAM
tested Internally tested internally
testing capacity KEMSA
Enhanced efficient
Implement the Labora- Automate the Lab Percentage Auto- and security of Labo-
QAM/
tory Information Man- Processes into LIMS mated Lab Pro- ratory documentation 1 1
ICTM
agement System(LIMS) system cesses and Performance
Tracking
Upgrade a testing Construct or refurbish
Increased Efficiency
Laboratory for health a testing Laboratory Percentage HPTs
in health Products & 1 1 QAM
technologies to enhance for health technolo- tested Internally
technologies testing
their testing gies
Recruit and train Number of New
Improve Capacity of QA Staff Improved QA capac- DHRA/
additional Quality 1 1 1 1 1 5
Quality Assurance ity QAM
Assurance staff
Improved efficiency in
Optimal material han- No. of New MHEs material handling
Acquire MHEs 6 6   3 6 21 OD/WM
dling Acquired

Acquire Storage for

Percentage In-
Specialized HPTs, Adequate storage ca- OD/
Improve on Storage for crease in Storage
8°C -22°C, -20°C for pacity for Specialized 1 1 ICTM/
Specialized HPTs capacity for spe-
Small and high Value HPTs QAM/WM
cialised HPTs
HPTs

41
42
Pillar 3: Internal Processes & Systems
Strategic Objective 3: To have robust internal processes and systems that support the business
Target/Time frame (by Plan Year)
Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target
Improved efficiency
Percentage uti-
Review and improve Acquire internal dis- and effectiveness
lized of internal OD/DM/
internal distribution tribution fleet where of inter-warehouse 6 3       9
fleet for distribu- DHRA
fleet management necessary transfers and order
tion
deliveries
Percentage in-
Improve KEMSA stor- Increase the available crease in Ware-  Increased storage space OD/
age space capacity for storage space capacity house Space and reduced operational 2 1 1     4 DHRA/
HPTs for HPTs Capacity cost. QAM

Automate Dashboard of Automated supply Percentage of Au- PCIM/

Automated Metrics  1         1 
supply chain metric chain metrics tomated Metrics ICTM
Review of call-down
and procurement
processes.

Carry out Supplier

Assessment OFR OFR
OFR UHC OFR UHC OFR UHC
Improve Order Fill rate UHC UHC OFR UHC
-100% -100% -100%
-100% -100% -100% PCI/SM/
Carry out F & Q in Improved order fill
Order Fill rate OFR PD/OD/
collaboration with the rate. OFR OFR OFR
OFR OFR EMMS- DLS
counties and MOH. EMMS- EMMS- EMMS-
EMMS- EMMS- 90%
Engage HPTs local 90% 90% 90%
90% 90%
Manufacturers during
Procurement
Partnership with
stakeholders key to
ensuring stock avail-
ability
Operationalize No. of days -Re- 7 7 6 6 5 5
regional distribution PCI/SM/
Improve order turn- duce time from 15
centers Reduced TAT PD/OD/
around time to 5 for hospitals
DLS
and 8 for RHFs 10 10 9 9 8 8

Strategic Plan 2019 – 2024

 Pillar 3: Internal Processes & Systems
Strategic Objective 3: To have robust internal processes and systems that support the business
Target/Time frame (by Plan Year)
Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target
Connect depots
through Fiber optics
Fiber connectivity to Percentage of pro-
to either Mombasa

Strategic Plan 2019 – 2024

regional depots for cesses transacted
or Kisumu, connec-  connected depots  1          1 ICTM
real-time executions of through ERP from
tivity via 3G mobile
KEMSA transactions Regional depots
connectivity to other
warehouses
No. of modules in
Acquire new ERP Acquire new ERP New ERP system in
the Newly ac-   17       17 ICTM
system system place
quired ERP
Acquire call center Report on launch ICTM/
response rate  Call center in place 1           1
solution of call center CSM
Automate employee Procure a time and
Percentage of Staff  Improved staff DHRA/
attendance Tracking attendance tracking  1 1 1 1 1 5
attendance attendance ICTM
system system (clock in)
Improve Security of Procure CCTV and  Improved security
No. of Depots OD/CSO/
the KEMSA regional network system for surveillance around 1 1 1 1 4
CCTV upgraded ICTM
Depots regional depots depots
Install facilities that
Improve KEMSA ame- support PWD and No. of facilities  Rehabilitated & im- DHRA/
1 1 1 1 1 5
nities and facilities general working envi- improved proved facilities ICTM
ronment
Enhance staff mobility  Improved staff Mobility
Tender for purchase / Number of new
when transacting KEM- for transacting KEMSA 10 10  2      22 DHRA
lease new pool fleet vehicles acquired.
SA business Business
Acquire staff canteen
Improve Staff welfare
Identify and imple- No. of recreational
by provision of ame- Improved Staff wel-
ment staff canteen activities offered     1       1 DHRA
nities and recreational fare
and recreation activ- to staff
activities
ities
No. Of Employee Improved Staff wel-
assistance pro- fare
Establish employee Initiate employees as-
grammes in place      1      1 DHRA
assistance programmes sistance programmes Employee engage-
& No. of beneficia-
ries (Staff) ment index
Install and operation- % Completion of
Provide clean water for

43
alize water treatment the water treat- Improved hygiene    1        1 DHRA
staff
plant ment plant
44
Pillar 4: Strategic Partnerships
Strategic Objective 4: To develop and strengthen strategic alliances and partnerships for improved health supply chain systems

Target/Time frame (by Plan Year)

Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target
Establish a partner-
Engagement frame- operationalize the en-
ship engagement 1         1 CEO/DCS
work in place gagement framework
framework  
Review existing part- Number of existing New business oppor-
nerships and engage and new partners on tunities and strength- 9 10 11 11 12 12 CEO/DCS
in new partnerships. board ened ties
New business oppor-
Conduct bi-annual Number of round
Develop and tunities and strength- 2 2 2 2 2 10 CEO/DCS
round table meetings. table meetings held
sustain transforma- ened ties
tional relationships Hold quarterly perfor- Review reports
Number of quarterly MCP/PD/
with development mance review meet- Actions plans for the 4 4 4 4 4 20
review meetings held CSM
partners and key ings next quarter
stakeholders Submit reports regu-
Number of reports Strengthen stakehold-
larly to the develop- 4 4 4 4 4 20 MCP/PD
submitted quarterly er’s engagement
ment partners
Implement online Online reporting operationalize the on- ICTM/
1         1
reporting portal portal line reporting portal MCP
Invest to maintain Number of existing New business oppor-
social capital for part- and new partners on tunities and strength- 9 10 11 12 12 12 CEO/DCS
ners board ened ties
Collaborate with
Number of industry Improved supply
health industry play- 1 1 2 PD/DCS
players engaged chain performance
ers
Leverage on the Percentage of prod-
Procure from local Lower prices and
strength of local ucts procured from 10% 10% 10% 10% 10% 50% PD/DCS
manufacturers Shorter lead time
manufacturers and local manufacturers
industry players. Share information on Number of supply
demand and forecast planning meetings Improved stock avail- PD/PCIM/
2 2 2 2 2 10
analysis with local held with local man- ability DCS

Strategic Plan 2019 – 2024

manufacturers ufacturers
 Pillar 4: Strategic Partnerships
Strategic Objective 4: To develop and strengthen strategic alliances and partnerships for improved health supply chain systems

Target/Time frame (by Plan Year)

Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target

Strategic Plan 2019 – 2024

Build and sustain Establish a partner- DCS
Number of existing Increased business
partnerships with key ship engagement 28 28 28 28 28 140
key stakeholders opportunities
stakeholders framework     
Hold stakeholders Number of quarterly Improved customer DCS
4 4 4 4 4 20
forums. forums satisfaction
Benchmark with top Number of visits Implementation of CEO/DCS
1 1 1 1 1 5
players in the industry done best practice

Pillar 5: Leadership and Governance

Strategic Objective 5: To develop a dynamic, transparent and accountable governance structure and systems
Target/Time frame (by Plan Year)
Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target

Advocate for a fully

Fully constituted board Fully constituted board  1 1        2 CEO
constituted Board

Review and update

the Board Charter and Revised Board charter Approved Board Char-
  1        1 CEO/DLS
Board Committee’s and Board TORs ter and Board TORs
TORs
Provide effective lead-
ership and oversight Number Board In-
duction Sessions and
Carry out Board induc- Enhanced performance
Trainings Held &  10  10 10 10  10  10 CEO
tion & trainings and efficiency
Number of board
members trained
Enhanced board
Develop and implement
e-board system in use communication and 1        1 ICTM
e-board system
performance

45
46
Pillar 5: Leadership and Governance
Strategic Objective 5: To develop a dynamic, transparent and accountable governance structure and systems
Target/Time frame (by Plan Year)
Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target

Develop draft regu-

lations for recommen-
Strengthen manage-
dation to the Cabinet Operationalized KEM-
ment systems for en- Draft regulations     2      2 CEO/DLS
Secretary for operation- SA Regulations
hanced efficiency
alization of the subsidi-
ary/commercial service

Review the existing

Reviewed and ap-
policies, manuals, SOP’s Operationalized poli-
proved policies and 4 4 4 4 4 20 CEO/DLS
and overseeing imple- cies
manuals and SOP’s
mentation

Review and oversee Implementation status

implementation of com- of Communication CEO/
communication reports 2       2
munication strategy and strategy and Commu- PR&CM
Improve public opin- policy nication plan
ion, attitude and behav-
Review and oversee im- Implementation status CEO/
ior of key stakeholders Approved CSR policy 1          1
plementation of corpo- of CSR Plan PR&CM
rate social responsibility CEO/
strategy and policy   CSR reports           20
PR&CM
Review and implement Revised ERM Frame-
ERM framework, policy work, policy and
and procedures and procedure manual & ERM Reports  4 4   4 4  4  20 IA& RM
conduct a risk maturity No. of ERM assessment
To Strengthen Enter- assessment conducted
prise Risk Management
and BCM Conduct corporate
and departmental risk
No. of Risks identified Updated departmental HODs/
assessment, develop and  4 4   4 4  4  20
& mitigated risk registers CEO
implement mitigation
measures

Strategic Plan 2019 – 2024

 Pillar 5: Leadership and Governance
Strategic Objective 5: To develop a dynamic, transparent and accountable governance structure and systems
Target/Time frame (by Plan Year)
Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target
Approved Business
Continuity Policy /  1         1 DFS

Strategic Plan 2019 – 2024

To Strengthen Enter- Develop & Implement
No. of BCM Sensitiza- plans
prise Risk Management Business Continuity
tions conducted
and BCM Management programs Bi-annual Review
 2  2  2  2  2 10 DFS
reports
Reviewed Security Improved security &
Review, implement and Policy and Procedures safety of KEMSA assets  1         1 CSO
sensitize internal and Manual & staff
external customers on
corporate security threat No of Security inci- Improved security &
management solutions dents reported and safety of KEMSA assets  4 4   4  4 4  20 CSO
resolved & staff
Carry out corporate Number of security
security and fire safety and fire safety audits Security audit reports  2  2  2  2  2 10 CSO
audits conducted
Strengthen corporate se-
Number of electron-
curity risks and disaster
ic security gadgets
management programs Deploy technology to
installed i.e. electronic Access control reports
offer maximum security
Review effective Hu- access control, walk Enhanced access con-  2 2  2 2  2  10 CSO
to all KEMSA assets and
man Capital Manage- through detectors, trol
infrastructure.
ment Systems security alarms and
electric fence system
  Review and oversee im-
Organizational Culture DHRA/
  plementation of change Culture Survey Index    1     1  2
Survey Index CEO
management program
Review and oversee im- CEO/
plementation of integri- Integrity survey Index Integrity survey index  1 1 1 1 1 5 DHRA
ty testing programs
CEO/
Review and oversee  1         1 DHRA
% Reviewed HR manu- Reviewed and updated
implementation of HR
al, policies and proce- HR manual, policies
manual, policies and
dures and procedures. CEO/
procedures  2 5  4  3 3  17
DHRA

47
48
Pillar 5: Leadership and Governance
Strategic Objective 5: To develop a dynamic, transparent and accountable governance structure and systems
Target/Time frame (by Plan Year)
Strategy Activity KPI Output Total-Plan By Whom
1 2 3 4 5
Target
Percentage of Compli- CEO/
Review and oversee im- Annual Training Plan 1   1  1  1  1 5 DHRA
ance to training plan
plementation of learn-
Percentage of success- Improved work out- CEO/
Strengthen corporate se- ing and development fully executed training puts and employee 85% 85% 85% 85% 85% 85% DHRA
curity risks and disaster programs programs performance
management programs
1 1 1 1 1 5 CEO/
Review effective Hu- Oversee Implementation 1. Approved annual DHRA
Employee Retention
man Capital Manage- of performance apprais- performance targets
Rate
ment Systems al system 2. Appraisal reports
70% 70% 70% 70% 70% 70%
  No. Directorates & CEO/
Approved Succession
Implement Succession Departments with suc-  5 5 DHRA
Management plan
Management Plan cession management
plans CEO/
  Succession plan reports  2 2  2 2 2 10 DHRA
 
Provide assurance on
Carry out external quali-
internal controls, gover- Quality assessment
ty assessment of internal Assessment Score      1     1 IA&RM
nance and risk manage- report
audit Department
ment systems

Half year and annual

Ensure sustainability Provide reports on sus- No. of sustainability
reports on sustainabil- 2 2 2 2 2 10 CEO/DFS
reporting tainability reports
ity

Strategic Plan 2019 – 2024

5.2 Annual Action Planning: Institutionalizing and Operationalizing Strategy
Strategy implementation is about change management and the action stage of the planning
process. To ensure successful implementation of this strategic plan, KEMSA will continually
assess the optimality of its structures and if necessary, undertake culture change management
at all levels, offer the requisite training, recruit adequate competent staff, enhance the internal
systems and processes, and mobilize adequate resources to undertake this critical task. This
involves designing and managing systems to achieve the best integration of people, structure,
processes and resources in achieving institutional objectives. Four broad areas that stand
out include:
(i) Performing the recurring administrative tasks associated with strategy implementation.
(ii) Creating a fit between strategy and the various internal “ways of doing things” to align the
whole institution behind strategy accomplishment.
(iii) Figuring out an agenda and a set of action priorities that matches with the overall situation
and the context within which implementation must take place, and
(iv) Management and leadership style to adapt in inducing the needed institutional changes.

Successful strategy execution depends greatly on good internal environment and competent
personnel. A strategy implementer can opt for an active, visible role or a low-key,
behind the scenes role, remaining aloof from the day-to-day problems. To some extent,
therefore, each strategy implementation is unique enough to push for change in shaping
the character of implementation and moving the process along. Strategy implementers’
challenge in performing these tasks is to bring the Authority’s internal operations into good
alignment with strategy and to unite the total institution behind strategy accomplishment.
Strategy-supportive matches are needed with necessary skills and capabilities, area
activities, structures, incentives, policies and procedures, information systems and control
mechanisms, budgets and programmes, and shared values and norms. The Board’s role in
the implementation process is leading and setting the tone, the pace and style of strategy
implementation.

The structure, culture, policies, staff and leadership style will be driven towards successful
implementation of this strategic plan. Where there are inconsistencies, internal adjustment
will be necessary. The success of implementing the planned strategies would eventually lead
to improved overall performance and sustainable growth. KEMSA will continuously pursue
this Strategic Plan as a roadmap for sustainability and success. The Authority will ensure ef-
fective institutionalization and operationalization during strategy implementation.
The Kenya Health Sector Partnership and Coordination Framework 2018-2030 establishes
structures and mechanisms that bring together all key partners in the health sector at different
levels to work in collaboration to achieve priority sector objectives and results. To improve
the overall partnership and coordination in KEMSA, the following issues will be prioritized:
improving operationalization of agreed coordination structures; strengthening harmoniza-
tion efforts amongst stakeholders; establishing a capacity building process for partnerships;
and establishing a fully functional partnership mechanism. For effective implementation ar-
rangement, a common planning and annual budgeting process will be adopted. The common
planning framework will be defined by the Kenya Health Policy 2014-2030, the Kenya Health
Sector Strategic and Investment Plans (KHSSPs) Annual Work Plans, County Integrated De-
velopment Plans (CIDPs) and National Programme Plans.

There is need to communicate this strategy deliberately in order to attain, strengthen and
preserve a favorable opinion of the Strategic Plan and to ensure buy-in from all relevant part-
Strategic Plan 2019 – 2024 49
ners and stakeholders. The communication will focus on: ensuring that all stakeholders are
fully informed and understand their roles and responsibilities in implementation of the SP,
enhancing consultation with agencies in achieving set outcomes and ensuring that all stake-
holders understand the SP and ongoing reform process.

5.3 Budgeting, Resource Implications and Mobilization

Effective strategy implementation will require careful attention to resource development,
allocation and utilization. The base of both financial and human resources will require
consolidation to sustain KEMSA operations over the next five years. Putting in place a
sustainable mechanism that ensures optimal utilization of human and financial resources is,
therefore, critical. KEMSA will require funds to finance both recurrent and capital expenditure
budgets. The leadership will need to develop strategies to prioritize and mobilize resources
(tangible, intangible and capabilities) aimed at meeting possible resource gaps.

The five-year Strategic Plan (2019-2023) calls for Annual Operational Plans (AOPs), meaning
that during each year, the various departments will pick out strategies and activities planned
for that particular year and schedule them accordingly. This will be done through assigning
tasks and responsibility to the implementers as well as budgeting. Annual Work Plans will
be completed before developing the budgets. To implement the Plan, the Authority will need
to carry out annual budgeting to ensure resources mobilization and determine the estimated
amount of resources required each year. The budgetary requirements and projections will be
developed and approved by the Board of Directors annually in form of an operational annual
budget. Annual action plans will be extracted by the parties responsible for implementation.
These annual operational plans will then be synchronized with the planned strategic
deliverables. Annex 2 outlines KEMSA Annual Work Plans.

Attracting, maintaining and retaining qualified and competent human capital is one of
the key drivers of successful strategy implementation. Short-term and long-term staff
development programmes should form part of the human resource management that supports
implementation of the planned activities to attain the set goals and objectives. Successful
implementation of the Strategic Plan is therefore, dependent on the Authority’s human
capital management. To reduce undue bureaucracy and enhance efficiency, the following
will be necessary:
(i) Once the annual budget is duly drawn up and approved by the Board, the responsibility of imple-
mentation is decentralized to departments.
(ii) The governance structures should be streamlined to ensure smooth operation of each department.

50 Strategic Plan 2019 – 2024

 Table 14: Strategy Implementation Budget
Strategic Cost of Implementation in Million KES
No. Pillar Strategies
objectives Year 1 Year 2 Year 3 Year 4 Year 5 Total
1 Customer To Increase the 1. Increase the demand for KEMSA Health
Focus market Share Products & Technologies 5,251.0 4,176.4 3,212.8 1,726.0 1,759.9 16,126.1
from 70% to 2. Enhance commercial performance
90%
3. Improve marketing communication

Strategic Plan 2019 – 2024

4. Improve customer relationship manage-
ment
5. Strengthen the capacity of SSD
2 Financial Stew- To ensure a 1. Increase in demand for KEMSA Products 110.5 92.5 77.0 75.0 78.0 433.0
ardship robust finan-
cial framework 2. Venture into new markets.
for a concrete 3. Increase revenue from supply chain
financial base services
4. Share Health Supply Chain Expertise.

5. Enhance KEMSA Capitalization from

KES 8B to 10B
6. Cost Management
3 Internal To have ro- 1. Strengthen inventory, storage, order 391.15 499.85 131.6 159.85 42.35 1,224.8
Processes & bust internal management and delivery
Systems processes and 2. Align Procurement processes and sys-
systems that tems to customer demand
support the
3. Strengthen QA processes and systems
business.
throughout the supply chain
4. Strengthen inventory, storage, order
management and delivery
5. Support KEMSA management systems
and processes through automation and
innovation
6. Enhance work environment and human
capital

51
52
Strategic Cost of Implementation in Million KES
No. Pillar Strategies
objectives Year 1 Year 2 Year 3 Year 4 Year 5 Total
4 Strategic Part- 1. Develop and sustain transformational 41.94 33.34 37.04 33.39 34.92 180.6
nership To develop relationships with development partners.
and strengthen
alliances and 2. Leverage on the strength of local manu-
partnerships facturers and industry players.
for improved 3 Build and sustain partnerships with key
health supply stakeholders
chain systems

5 Leadership and To develop 1. Strengthen management systems for 377.5 1349.5 380.875 332.5 329.5 2,769.9
Governance a dynamic, enhanced efficiency
transparent 2. Strengthen public opinion, attitude and
and ac- behavior of key stakeholders
countable
governance  3. To Strengthen ERM
structure and
4. Develop effective Human Capital Man-
systems
agement Systems
5. Provide assurance on internal controls,
governance and risk management systems

Total 6,172.1 6,151.6 3,839.3 2,326.7 2,244.7 20,734.4

KEMSA will require about KSh. 20,734,400,000 (Approx.) to implement its activities over the plan period. The areas for which the funds
will be required and the estimated amounts are as given in the Implementation Matrix.

Strategic Plan 2019 – 2024

5.3.1 Funding Strategies
KEMSA will need a mix of strategies to raise funds for strategy implementation. In addition
to the various sources of funds, KEMSA will continue to institute annual cost saving strate-
gies to be employed during the plan period. The following will the main strategies:
(a) Income from sales
It is envisaged that the funding for most KEMSA expenditure, particularly on purchases
during the Plan period, will be from existing sources, that is, sale of pharmaceutical and
non-pharmaceuticals products.
(b) Government subvention
KEMSA will continue to draw funds from the National Treasury in the form of Government
subsidy for its recurrent as well as development expenditure. It is noted that KEMSA will
retain its position as a critical player in the UHC. It is also noted, however, that the National
Treasury would like KEMSA to be more autonomous in terms of funding its operations in
the future.
(c) Other sources of funds
Other sources of funds were identified as follows:
(a) Supply chain fees earned from engagement with strategic partners
(b) Short term investments in financial instruments
(c) Disposal of idle assets
(d) Training through the Medical Supply Chain institute.
(e) Donations from stakeholders.

5.4 Risk Analysis and Critical Assumptions

The envisaged strategic objectives can only be realized if the conditions in the internal and
external environment do not change in ways that shall not be anticipated at the time of its
preparation. Successful implementation of the plan is built on certain prevailing conditions
and assumptions; lack of the same could derail the Authority from the planned course. These
assumptions act as constraints to the achievement of the various strategies, to which the ac-
tion plan should then be sensitive.
Human resource capacity and availability of funds are critical assumptions constraining suc-
cessful implementation of the plan. At the same time there may be potential factors and risks,
which if they occur, will threaten the degree to which the planned objectives may be met.
Whereas these factors and events can happen, it is generally assumed that they will not occur
during the plan period. It is therefore necessary to state that the successful implementation
of the plan will be based on the assumption that the prevailing and anticipated conditions
in the operating environment will not vary significantly from what is already known. It has
been assumed that:
(i) The Authority’s leadership will remain supportive to the implementation process.
(ii) Most resources required for the implementation of the Strategic Plan will be funded through
annual financial/ resource mobilization and allocations.
(iii) Human Resources and capacity gaps identified will be addressed in a timely manner.
(iv) The ICT function will be strengthened to respond to the stakeholders’ needs.
(v) Required revenue targets for various strategies will be achieved.
(vi) The national and county political environments and uncertainties will remain stable.
(vii) The Authority’s model of a learning institution and culture will continue.
(viii) The Authority will consistently and deliberately pursue excellent performance.
(ix) Policies that allow KEMSA to continue its role of providing quality and affordable HPTs.

It is important to identify risks that would hinder strategy execution or reduce the positive
effect of this plan to allow for their mitigation. Potential risk factors and events which, if
they occurred, would threaten attainment of planned strategic objectives that were identified

Strategic Plan 2019 – 2024 53

through environmental scanning to enable preparation of the Authority’s Business Continuity
Plan: the “What if” scenario. Annex 3 outlines a comprehensive Enterprise Risk Management
Matrix. The following factors could affect the momentum of plan unless mitigated:
(i) Weak internal systems and structures to support the Strategic Plan
(ii) Insufficient resources to support the strategic objectives
(iii) Unplanned and ineffective performance management
(iv) Lengthy administrative bureaucracy
(v) Poor plan implementation and monitoring
(vi) High staff turnover

These are risks that are not easily quantifiable but can be handled by widening of the resource
base and deflection of some activities during implementation. On a continuous basis, depart-
ments are expected to identify and profile potential operational risks to facilitate documen-
tation of the lessons learned. To mitigate these risk factors, KEMSA will develop a practical
Business Continuity Plan so that in the event of a disaster or disruption of the office facilities/
activities, the operations should resume within the shortest period possible based on the
backed-up data in a different location.

In order to achieve the Plan priority areas, there is recognition that key risks are likely to
affect the progress. The sources of risk are predicted in five related areas, which include
political commitment, political and social responsibility, inadequate financial resources, ep-
idemics, community involvement, provision of essential health care services, and quality of
care. KEMSA will ensure a “proactive approach” to ERM by beginning the risk management
activities early, making risk management iterative throughout the operations, ensuring solid
risk management processes, engaging risk owners early, training a team on risk management
processes, providing for multiple forms of risk identification activities, providing feedback
to risk owners and encourage frequent risk discussions. The actions will in turn ensure risk
management aligns with other primary constraints – scope, time, cost and quality.

54 Strategic Plan 2019 – 2024

CHAPTER 6: STRATEGY CONTROL, MONITORING AND EVALUATION

One of the key elements of strategic planning is understanding why some organizations,
in the same context and with a well-documented Strategic Plan, succeed while others fail.
Strategy control links elements of strategic management and helps an organization to contin-
uously adjust or revise its strategic inputs and actions to achieve the desired goals/outcomes.
These elements provide indicators for strategy control through continuous monitoring and
periodic evaluation. Strategy monitoring, and evaluation involves examining how the strate-
gy is being implemented as well as the outcomes of the strategy. The implementation of this
plan takes into account that the country is under a devolved system of governance. Stake-
holders in the health sector will include state actors (National and County Governments),
health-related sectors, external actors (development partners), non-state actors (implement-
ing partners, private sector) and clients. Chapter 6 highlights how KEMSA ensures its strategy
monitoring and evaluation.

6.1 Control, Responsibility and Accountability

The overall responsibility for successful strategy implementation rests with the Chief Execu-
tive Officer (CEO) under the leadership of the Board of Directors. It is, however, crucial that
all KEMSA stakeholders commit to supporting strategy implementation and actively contrib-
ute to its success. The implementation of the plan requires focus that is concurrent with, but
not necessarily the same as, the day-to-day activities of KEMSA operations. Coordination at
all levels of the plan, and its implementation, is necessary and it is a continuous cycle. PCI
dept through the Directorate of Finance and Strategy will provide periodic reports to the
Board of Directors, through the CEO, and control, monitoring and evaluation is undertaken
against key performance indicators defined in the Implementation Plan. PCI department will
periodically receive reports, provide feedback, co-ordinate and supervise implementation of
recommendations from the other stakeholders. PCI department will also ensure:
(i) Total quality assurance standards and a continuous improvement process.
(ii) Culture of change and effective management of change.
(iii) Maintain good relations with stakeholders, taking stock and sharing success stories.
(iv) Review performance management, monitoring and evaluation mechanism and provide periodic
reports.
(v) Document impact when carrying out various activities.

The 2019-2024 Strategic Plan has been designed to facilitate the realization of KEMSA vision
and mission and support accountability in the delivery of the Authority’s mandate. Since
monitoring and evaluation is a critical part of the service delivery process, the strategic plan
is cascaded to more sharply defined individual performance targets. The CEO will period-
ically monitor progress on the plans to provide briefing for the Board of Directors. In addi-
tion, regular meetings with departments/divisions will assess progress, resolve problems
and identify any support or development needs.
The success of the Strategic Plan significantly depends on how effectively the planned activities and
outputs are monitored and evaluated with a view to ensuring that KEMSA’s development over the plan
period (2019-2024) remains on the defined road map. Monitoring and evaluation framework, which
works in tandem with the Implementation Matrix, is designed to ensure the following:
(i) Establishment of an effective information system.
(ii) Establishment of clear reporting schedules, channels, and feedback mechanisms on an on-going

Strategic Plan 2019 – 2024 55

 basis, requiring time and commitment from all.
(iii) Candid and documented specifications of the roles of individuals and performance targets.
(iv) Clear statement and definition of action plans to be taken within specified timeframes; typically,
annually and quarterly.
(v) Linking Monitoring and Evaluation to Performance Management and Staff Appraisal.

6.2 Monitoring and Evaluation Framework

Monitoring and evaluation are essential functions to ensure that priority actions outlined
in the SP are implemented as planned against stated objectives and desired results. The ev-
idence gathered through implementation of the Monitoring and Evaluation framework will
be used to guide decision making by characterizing the implications of progress, or lack of it.
The monitoring and evaluation of the SP is guided by the health sector Monitoring and Eval-
uation framework. The monitoring and evaluation framework defines the responsibilities
of each actor and stakeholder. A transparent system of joint periodic data and performance
reviews that involves key stakeholders will be put in place. All the divisions and departments
will be required to maintain an implementation tracking plan which will keep track of review
and evaluation recommendations, agreed follow-up actions, and status of these actions. A
comprehensive feedback mechanism will ensure inclusiveness to enhance accountability.

Quarterly and annual reports will be prepared and a comprehensive analytical report giv-
ing a snapshot of performance covering the different strategic objectives articulated in the
Strategic Plan (2019-2024) will be produced. A mid-term review and an end evaluation will
be undertaken to determine the extent to which the objectives of this Strategic Plan are met
across the different indicator domains. The principle of joint assessment will be used at all
levels during performance reviews. This will involve all stakeholders, both government and
non-government actors, in review of performance. The purpose of the joint assessment is to
review performance, determine priorities, action plans and spending for the subsequent pe-
riod. KEMSA CEO in conjunction with KEMSA Management, will be responsible for the day
to day implementation and coordination of the monitoring and evaluation this Strategic Plan.

6.2.1 Performance Monitoring

A desk top monitoring framework (dashboard) from the implementation matrix will facili-
tate and check on the status of planned activities, thereby prompting action in case of delays
or gaps. The monitoring framework will include prompts to the management on implemen-
tation progress, detail activities that are behind schedule and those that are complete.

At the beginning of each year, all the units (directorates and departments) will set their
performance targets as part of their Annual Work Plans as derived from their strategic activities.
In setting these targets, the performance should be monitored in a Special Management Meeting
planned and chaired by the CEO. The milestones of strategy monitoring, and reporting will
be done through bi-annual departmental work-plan implementation (monitoring) report.
Monitoring will help KEMSA to:
(i) Establish if performance targets have been met and deviations explained;
(ii) Act as an early warning sign and detect potential difficulties as well as help to address them during
implementation; and
(iii) Provide feedback to the next phase of implementation, reduce the cost and/or increase the efficien-
cy of post evaluation studies.

56 Strategic Plan 2019 – 2024

Table 15 presents a monitoring template, guiding monitoring of strategy implementation.
Table 15: Strategy activities Monitoring Tool
Strategic Objective:

Timeline Output
Strategy Activities
Planned Actual Status Expected Actual Status

Progress Reports
Progress Reports, based on the above monitoring tool, will be prepared by all departments based on the
strategic objectives driven by the departments. The reports will be submitted to the PCI dept. Reports
will be prepared quarterly and annually. The annual reports will coincide with the KEMSA’s budgetary
cycles. Reports will be based on the quarterly work plans drawn from the Implementation Matrix and
will describe actions taken by departments toward achieving specific outcomes and strategies of the
plan and may include costs, benefits, performance measures and progress to date.

6.2.2 Performance Evaluation

During implementation, the Strategic Plan
will be evaluated to ensure that it is feasible
and has been executed to produce the
intended results. A mid-term review and a
summative evaluation will be undertaken
to determine the extent to which the
objectives of this strategic plan are met
across the different indicator domains -
inputs/processes, outputs, outcomes and
impact. The mid-term review will coincide
with the annual review of the Strategic
Plan year three. The results will be used to
adjust strategies, priorities and objectives.
The evaluation of the annual plans remains
critical during strategy implementation, to
find out if the intended results have been
realized. Performance evaluation shall
be carried out at the end of the year. The
agreed performance indicators and targets
will be used as bench marks for year-end
evaluations.

Evaluation will be undertaken by the PCI department in conjunction with the departmental Performance
Management champions and Heads of Departments. The PCI team will evaluate all strategies, activities
and outputs/outcomes with a view to advising the management on any performance gaps as well as
offering feasible strategy alternatives. The evaluation will entail the following:

Strategic Plan 2019 – 2024 57

(i) Measuring actual performance against target levels and establishing size of gap or variance, if any.
(ii) Identifying the causal factors for the variance.
(iii) Identifying and recommending appropriate remedial measures including a review of the objectives
and/or strategies.
(iv) Undertaking service delivery surveys.
The outcome of the annual evaluation will form a good basis for the plans for the following
year. An evaluation template for evaluation is presented in Table 16.

Table 16: Strategy Evaluation Tool

Strategic Objective:
Strategy Key Performance Indicator Planned Output Actual Status Comments

6.3 Linking M&E to Performance Management and Staff Appraisal

To ensure sustainability, a culture of performance management will cover all staff irrespective of levels.
This will enable staff to appreciate their individual linkage and contributions to the implementation
of the Strategic Plan and the attainment KEMSA objectives. For the implementation of the Plan to be
effective, the M&E will be an integral part of KEMSA’s performance management system and will be
linked to staff appraisal and reward systems. Officers meeting and exceeding their planned target will
be rewarded in line with the Authority’s reward and recognition policy.

6.4 Conclusion
Monitoring, evaluation and learning (MEAL) provide continuous feedback for plan review
and enhances constant communication, resulting in strategy modification. KEMSA has set
out a goal to improve its performance and to obtain a commitment from stakeholders to work
together towards these goals. Realistic expectations will be established to guide the journey
into the next five years.

The Authority will keep a vigilant eye over existing and emerging competition in order to
assure itself of growth and success in the pharmaceutical industry. Guided by this Strate-
gic Plan, KEMSA will strive to cultivate creativity in service delivery minimize stock outs,
ensure improved order fill rates, improved turnaround and therefore customer satisfaction,
increased market share, and sustainable growth.

================== END ==================

58 Strategic Plan 2019 – 2024

 ANNEXES
Annex 1: Annual Work Plans
Pillar 1: Financial Stewardships
Strategic Objective: To ensure a robust financial framework for a concrete financial base.

Strategic Plan 2019 – 2024

Strategy Activity Re- Target/Time frame (by Plan Year)
sponsi- Year 1 Year 2 Year 3 Year 4 Year 5
ble Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Venture Implement Market segmenta- DCS 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
into new tion (non-traditional markets)
markets.
Increase rev- Develop and sustain viable DCS/   1                 1             1    
enue from Strategic partnerships. DFS/
supply chain MCP
services DCS/   100M       100M     100M     100M     100M     100M    
DFS/
CEO/
DLS
Develop and Review a costing DFS Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Policy for Management of
Strategic Partnerships
Share Health 1. Establish a Health supply chain DFS         Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Supply institute of excellence
Chain Ex- 2. Prepare a Training modules and
pertise. orient Trainers
3. Engage the Chartered Institute
of Supply Chain Management
(CISCM) and Kenya Institute
of Supply Chain Management
(KISM) for accreditation
Enhance Lobby with GOK/MOH and DFS 1B           1B                          
KEMSA Development partners to fund
Capitaliza- capital expenditure
tion from
KES 8B to
10B

59
60
Pillar 1: Financial Stewardships
Strategic Objective: To ensure a robust financial framework for a concrete financial base.

Strategy Activity Re- Target/Time frame (by Plan Year)
sponsi- Year 1 Year 2 Year 3 Year 4 Year 5
ble Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Cost Man- Implement activity based DFS 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%- 95%-
agement budgeting 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Integration of distribution of DO 80% 81% 82% 83% 84% 85% 86% 87% 88% 89% 90% 91% 92% 93% 94% 95% 96% 97% 98% 99%
KEMSA EMMS & Program
items

Pillar 2: Customer Focus

Strategic Objective 2: Increase Market Share from 70% to 90%.

Target/Time frame (by Plan Year)

Re-
 Strategy  Activity sponsi- Year 1 Year 2 Year 3 Year 4 Year 5
ble
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Increase the Increase Product range for SMM/   100 50 50 50 50 50 50   50 50 50     50 50   50 50  

demand HPTs PD
for KEM- Increase the No. of specialized HSSD/ 20 5 5 20 5 5 20 5 5 20 5 5 20 5 5
         
SA Health HPTs PD
Products &
Conduct continuous medical SMM/ 6 6 6 4 6 6 6 4 6 6 6 4 6 6 6 4 6 6 6 4
Technologies
education (CME) sessions HSSD
Develop the Capacity of 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
KEMSA staff on product HRM
knowledge
Carry out focused marketing 8 7 6 6 8 7 6 6 8 7 6 6 8 7 6 6 8 7 6 6
promotions
PRCM

Establish & Strengthen Strategic DCS/ 1   1   1   1   1   1   1   1   1   1  

Market Access Partnerships HSSD
Conduct market Research and   1               1               1    
DCS

Strategic Plan 2019 – 2024

surveys
 Pillar 2: Customer Focus
Strategic Objective 2: Increase Market Share from 70% to 90%.

Target/Time frame (by Plan Year)

Re-
 Strategy  Activity sponsi- Year 1 Year 2 Year 3 Year 4 Year 5

Strategic Plan 2019 – 2024

ble
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Increase the Conduct sales storm at least one in   1       1       1       1       1    

every region
DCS
demand
for KEM- Continuous identification of Pros- 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
SA Health pects and map them accordingly SMM/
Products & HSSD
Technologies
Enhance Improve debt recovery through DCS/ 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125 125
commercial arbitration by COGs and Intergov-
performance ernmental budget and economic
DFS/
council(IBEC) DLS
Introduce convenient payment   2                                    
platforms
DFS

Continuous Measurement of tar- >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90% >90%
gets disaggregated by segment of of of of of of of of of of of of of of of of of of of of
DCS target tar- target target target tar- tar- tar- target tar- target target tar- target tar- target tar- tar- tar- target
get get get get get get get get get get
Conduct Quarterly performance 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
review meetings
DCS

Continuous engagement with key Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con- Con-
stakeholders CEO tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu- tinu-
ous ous ous ous ous ous ous ous ous ous ous ous ous ous ous ous ous ous ous ous
Improve mar- Execute advertising and publicity 4 5 5 1 4 5 5 1 4 5 5 1 4 5 5 1 4 5 5 1
keting commu- campaigns
PRCM
nication
Redesign and regularly update                                        
the website
PRCM

Enhance social media marketing                                        

strategies
PRCM

Develop and execute corporate                                        

social responsibility campaigns
PRCM

Participate in relevant healthcare                                        

exhibitions and trade fairs
PRCM

61
Media Engagements PRCM                                        
62
Pillar 2: Customer Focus
Strategic Objective 2: Increase Market Share from 70% to 90%.

Target/Time frame (by Plan Year)

Re-
 Strategy  Activity sponsi- Year 1 Year 2 Year 3 Year 4 Year 5
ble
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Improve mar- Publish quarterly newsletter to 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

keting commu- deliver a range of promotional PRCM
nication messages
Carry out media engagement 25 25 25 25                                
training for Key staff in sales, cus- PRCM
tomer service and technical staff
Involvement in relevant profes- SSM/ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
sional conferences & seminars HSSD/
PRCM
Improve cus- Capacity Development on HPTs                                        
CSM/
tomer relation- and data management to KEMSA
ship manage- customers ICTM
ment
Strengthen customer feedback                                        
Management
CSM

Conduct customer satisfaction   1               1               1    

survey
CSM

Convene Bi-annual stakeholders CSM/   1 1     1 1     1 1     1 1     1 1  

forums SSM/
HSSD
Establish a call center CSM/   1                                    
ICTM
Customer service week CSM/   1       1       1       1       1    
PRCM
Carry out customer service and 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
CMS/
communication training for all
staff PRCM
Introduce customer recognition CSM/   1       1       1       1       1    
programs PRCM
Strengthen the Recruitment of dedicated officers           3                            
capacity of SSD managing key accounts
DHR&A

Strategic Plan 2019 – 2024

Procurement of appropriate motor       10                                
vehicles
DHR&A
 Pillar 3: Internal Processes & Systems

Strategic Objective 3: To have robust internal processes and systems that support the business.

Strategy Activity Responsi- Target/Time frame (by Plan Year)

ble
Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Strategic Plan 2019 – 2024

Bi-annual Review of PCIM/ 1   1   1   1   1   1   1          
Carry out reviews SMM
HPTs Demand
Develop and update QAM       230       230       180       130       130
appropriate products 1. New product Specifications
& specifications in col- Developed
2. Existing products Specifica-                                        
laboration with MOH &
customers tions Reviewed

Develop and implement Develop And Implement ICTM

Facility HPTs Consump- Facility HPTs Consumption
tion System System ICTM/   4 16 10 8 8 4 3                        
SMM
Develop an automated Procure an Automated ICTM &     1                                  
HPTs forecasting system HPTs forecasting System PCIM
Develop capacity of ICTM/                            
Roll out training on the use
counties Health workers SMM
of HPTs data management
on the use of HPTs data
system
management system
Develop and Implement PD/                          
supplier performance Appraise suppliers QAM/
measurement system ICTM
Advocacy for the Review CEO/PD/                                        
Advocate for the review of
of PPAD Act 2015 and DCS
PPAD Act and operational-
Operationalization of
ize regulations
Regulations
Establish a Microbiology Construct or refurbish func- QAM                                        
Testing Laboratory tional Micro-Biology Lab
Transition to and maintain ISO 17025:2017 QAM                                        
maintain ISO 17025:2017 Accreditation
Accreditation
Conduct ISO 9001:2015 Conduct ISO 9001:2015 QAM                                        
audits and Management audits and Management
reviews reviews

63
64
Pillar 3: Internal Processes & Systems

Strategic Objective 3: To have robust internal processes and systems that support the business.

Strategy Activity Responsi- Target/Time frame (by Plan Year)

ble
Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Review of SOPs and Conduct Procurements PD &                                      
adopt e-procurement through e-Procurement ICTM
platform
Review of SOPs
QAM/
HODs
Expand the wet chemis- Test 90% of the products QAM                                      
try Lab and increase the procured by KEMSA
testing capacity
Implement the Laborato- Automate the Lab Processes QAM/
ry Information Manage- into LIMS system ICTM
ment System(LIMS)
Upgrade a testing QAM
Construct or refurbish a
Laboratory for health
testing Laboratory for
technologies to enhance
health technologies
their testing
Improve Capacity of Recruit and train additional DHRA/
Quality Assurance Quality Assurance staff QAM
Optimal material han- OD/WM
dling Acquire MHEs

Acquire Storage for Spe- OD/

Improve on Storage for cialized HPTs, 8°C -22°C, ICTM/
Specialized HPTs -20°C for Small and high QAM/
Value HPTs WM
Review and improve
Acquire internal distribu- OD/DM/
internal distribution fleet
tion fleet where necessary DHRA
management

OD/
Improve KEMSA storage Increase the available stor-
DHRA/
space capacity for HPTs age space capacity for HPTs
QAM

Automate Dashboard of Automated supply chain PCIM/

supply chain metric metrics ICTM

Strategic Plan 2019 – 2024

 Pillar 3: Internal Processes & Systems

Strategic Objective 3: To have robust internal processes and systems that support the business.

Strategy Activity Responsi- Target/Time frame (by Plan Year)

ble
Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Strategic Plan 2019 – 2024

Review of call-down and
procurement processes.
Carry out Supplier Assess-
ment
Carry out F & Q in collabo-
ration with the counties and PCI/SM/
Improve order fill rate MOH. PD/OD/
DLS
Engage HPTs local Man-
ufactures during Procure-
ment
Partnership with stakehold-
ers key to ensuring stock
availability
Operationalize regional
PCI/SM/
Improve order turn- distribution centers PD/OD/
around time DLS

Connect depots through Fi- ICTM          

Fiber connectivity to
ber optics to either Momba-
regional depots for
sa or Kisumu, connectivity
real-time executions of
via 3G mobile connectivity
KEMSA transactions
to other warehouses
Acquire new ERP system Acquire new ERP system ICTM

Acquire call center ICTM/

response rate
solution CSM
Automate employee Procure a time and atten- DHRA/                                        
attendance Tracking dance tracking system ICTM
system (clock in)
Improve Security of the Procure CCTV and network OD/CSO/                
KEMSA regional Depots system for regional depots ICTM
Install facilities that support                
Improve KEMSA ameni- DHRA/
PWD and general working
ties and facilities ICTM
environment

65
66
Pillar 3: Internal Processes & Systems

Strategic Objective 3: To have robust internal processes and systems that support the business.

Strategy Activity Responsi- Target/Time frame (by Plan Year)

ble
Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Enhance staff mobility mar-                
Tender for purchase / lease
when transacting KEM- DHRA ket
new pool fleet
SA business
Improve Staff welfare Acquire staff canteen                
by provision of ame- Identify and implement
DHRA
nities and recreational staff canteen and recreation
activities activities
Establish employee assis- Initiate employees assis-                
DHRA
tance programmes tance programmes
Provide clean water for Install and operationalize                
DHRA
staff water treatment plant

Strategic Plan 2019 – 2024

 Pillar 4: Strategic Partnerships
Strategic Objective 4: Develop and strengthen strategic alliances and partnerships for improved health supply chain systems

Target/Time frame (by Plan Year)

Respon-
Strategy Activity

Strategic Plan 2019 – 2024

sible Year 1 Year 2 Year 3 Year 4 Year 5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Establish a partnership CEO/

1              
engagement framework   DCS

Review existing partner-

CEO/
ships and engage in new                                        
DCS
partnerships.

Conduct bi-annual CEO/

Develop and sustain trans- round table meetings. DCS
                                       
formational relationships
with development part-
ners and key stakeholders Hold quarterly perfor- MCP/
mance review meetings PD/CSM
                                       

Submit reports regular-

ly to the development MCP/PD                                        
partners

Implement online re- ICTM/

porting portal MCP
                                       

Invest to maintain social CEO/

capital for partners DCS
                                       

Collaborate with health

PD/DCS   6                                  
industry players
Leverage on the strength
Procure from local man-
of local manufacturers and PD/DCS 2       1       1                      
ufacturers
industry players.
Share information on
PD/
demand and forecast
PCIM/                                        
analysis with local man-

67
DCS
ufacturers
68
Pillar 4: Strategic Partnerships
Strategic Objective 4: Develop and strengthen strategic alliances and partnerships for improved health supply chain systems

Target/Time frame (by Plan Year)

Respon-
Strategy Activity
sible Year 1 Year 2 Year 3 Year 4 Year 5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Build and sustain Establish a partner-

partnerships with key ship engagement
stakeholders framework     
Hold stakeholders
forums.
Benchmark with top
players in the indus-
try

Pillar 5: Leadership and Governance

Strategic Objective 5: To develop a dynamic, transparent and accountable governance structure
Strategy Activity Responsi- Target/Time frame (by Plan Year)
ble Year 1 Year 2 Year 3 Year 4 Year 5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Advocate for a fully constitut- CEO                                        
ed Board
Review and update the Board CEO/DLS                                        
Provide Charter and Board Commit-
effective lead- tee’s TORs
ership and
Carry out Board induction CEO                                        
oversight
and training
Develop and implement ICTM                                        
e-board system

Strategic Plan 2019 – 2024

 Pillar 5: Leadership and Governance
Strategic Objective 5: To develop a dynamic, transparent and accountable governance structure
Strategy Activity Responsi- Target/Time frame (by Plan Year)
ble Year 1 Year 2 Year 3 Year 4 Year 5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Develop draft regulations CEO/DLS                                        
Strengthen for recommendation to the

Strategic Plan 2019 – 2024

public opin- Cabinet Secretary for opera-
ion, attitude tionalization of the subsidi-
and behavior ary/commercial service
of key stake- Review the existing policies, CEO/DLS                                        
holders manuals, SOP’s and oversee-
ing implementation
Review and oversee imple- IA & PRC    1                                    
Improve pub- mentation of communication
lic opinion, strategy and policy
attitude and
Review and oversee imple- IA& PRC  1  1  1  1  1  1  1  1  1  1  1  1  1  1  1  1  1  1  1 1 
behavior of
key stake- mentation of corporate social
holders responsibility strategy and
policy
Review and implement
ERM framework, policy and
IA& PRC
procedures and conduct a risk
maturity assessment
To Strengthen
Conduct corporate and de- HODs/CEO                                        
Enterprise
Risk Man- partmental risk assessment,
agement and develop and implement
BCM mitigation measures
Develop & Implement Busi- DFS                                        
ness Continuity Management
DFS
programs                                        

69
70
Pillar 5: Leadership and Governance
Strategic Objective 5: To develop a dynamic, transparent and accountable governance structure
Strategy Activity Responsi- Target/Time frame (by Plan Year)
ble Year 1 Year 2 Year 3 Year 4 Year 5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Review, implement and sensi- CSO                                        
tize internal and

external customers on corpo-

rate security threat manage-
ment solutions.
Strengthen
corporate 1. Reviewed Security Policy and
security risks Procedures Manual
and disaster 2. No of Security incidents
management Carry out corporate security CSO                                        
programs and fire safety audits

Deploy technology to offer CSO

maximum security to all
KEMSA assets and infrastruc-
ture.

Review and oversee imple- DHR&A

mentation of change manage-
ment program
Review and oversee imple- DHR&A
mentation of integrity testing
programs
Review
effective Hu- Review and oversee imple- DHR&A
man Capital mentation of HR manual,
Management policies and procedures
Systems Review and oversee imple- DHR&A
mentation of learning and
development programs
Oversee Implementation of DHR&A
performance appraisal system
Implement Succession Man- DHR&A                                        
agement Plan

Strategic Plan 2019 – 2024

 Pillar 5: Leadership and Governance
Strategic Objective 5: To develop a dynamic, transparent and accountable governance structure
Strategy Activity Responsi- Target/Time frame (by Plan Year)
ble Year 1 Year 2 Year 3 Year 4 Year 5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Provide IA&RM
assurance on

Strategic Plan 2019 – 2024

internal con- Carry out external quality
trols, gover- assessment of internal audit
nance and risk Department
management
systems
Ensure CEO/DFS
Provide reports on sustain-
sustainability
ability
reporting

71
 Annex 2: Enterprise Risk Management Matrix

72
(a) Financial Stewardship
Sources/Causes Score
Risk/ (Opportunity)
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood
Poor quantification 1. Proper and accurate data for forecasting
and quantification.
Expiries Introduction of new products with no 3 3 9
or low demand. 2. Consider Just-in-time acquisition of some
Increase in de- Products
mand for KEMSA Use of informed technical staff (both KEM-
Products Change in treatment regimen or
Obsolescence 3 1 3 SA and customers side) during product
technology
selection
Poor supplier performance Enforce contract management 2. Utilizing
Stock outs 3 3 9
Poor quantification supplier performance appraisal tool.
Getting threshold of the small orders based
Uneconomic Orders Lack of distribution costing model 2 3 6
on the distribution-costing model.
Increase in outstand- Lack of historical debt repayment Conducting market research on repayment
3 2 6
ing Debt information history of customers.
Venture into new
markets. Inability to fulfil Lack of historical consumption data Conducting market research before ventur-
1 2 2
needs of new markets on customers ing into new markets
Unscrupulous business men who Due diligence through Know Your Custom-
Fraudulent orders want to utilize organizational loop 3 1 3 er (KYC) procedures before engaging new
holes business partners/customers.
Reduction in donor Change of policy Have a pool of donors and constant lobby-
3 2 6
funding Growth in economy ing for new partners.
Establish a costing policy for pricing donor
Unviable partnerships Lack of costing policy 3 2 6
funded projects.
Political interference
Increase reve- Counter press statements and frequent doc-
Bad publicity Audit Reports 2 3 6
nue from supply umentary on KEMSA.
chain services Poor performance
The government Lack of funding from the exche-
not honoring their quer
Constant lobbying with treasury and
commitment with 3 2 6
MOH
development part- Lack of budgetary provision.
ners.

Strategic Plan 2019 – 2024

 Sources/Causes Score
Risk/ (Opportunity)
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood
Failure of the project Setting up of a Technical Working Group
Lack organizational commitment 3 2 6
to kick-off (TWG) and clear Terms Of Reference (TOR)
Share Health Normal Departmental Lack of Contingency plans and laid
Supply Chain Operations might be down structure and guidelines to be 2 2 4 Have Contingency plans
Expertise. disrupted used.

Strategic Plan 2019 – 2024

Conflict with core Management tendency to over focus
2 2 4 Clear roles and responsibilities
mandate on the Institute.
Enhance KEMSA The targeted project Lack of funding from the exchequer
Capitalization might fail due to de- Lobbying for inclusion in the Ministerial
Lack of budgetary provision in the 3 3 9
from KES 8B to lay in disbursement/ budget.
10B release funds ministerial budget

Planning and budget- Poor planning within the depart-

ing for activities that ments.
Sensitization of departments on budgeting
are not aligned to the 3 3 9
process
organizations core
Poor prioritization of activities.
objectives
Cost Management
Failure to budget for Not budgeting for emergencies and
3 1 3 Having business continuity plans in place
unforeseen activities unforeseen activities
Increased Order Failure to harmonies ordering
Sensitization of Counties and Programs
Turn Around Time process by programs and facili- 3 3 9
to harmonies ordering process
(TAT) ties.

b) Customer Focus
Sources/Causes Score
Risk/ (Opportunity)
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood

73
 Score

74
Risk/ (Opportunity) Sources/Causes
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood
Expiries Change of guidelines 3 2 6 Regular Post distribution Surveillance
Obsolescence Inaccurate forecasting 3 1 3 Regular Post Distribution surveillance
Inadequate funds Unpaid debts 3 2 6 Improve on debt collection mechanism
Increase the de-
mand for KEMSA Stock outs Poor Quantification
Health Products Non delivery by suppliers 3 3 9 Data driven forecasting & Quantification
& Technologies Inadequate Storage
space Over stocking 2 1 2 Proper planning
Increased Holding
cost Over stocking 2 1 2 Proper forecasting, demand planning
Loss of Business Change/unsupportive Laws/ 3 2 6 Continuous advocacy
Enhance commer- Inadequacy of funds Unpaid debts 2 2 4 debt management
cial performance Obsolescence Technological changes 3 1 3 Regular post marketing surveillance
Inadequacy of funds  Lack of budgeting 3 2 6 Timely initiation of procurement.
Improve market-
Reputational damage.  Negative publicity 3 2 6 Media management
ing communica-
tion Delayed dissemina-
Lengthy procurement process
tion of information 2 3 6 Proper procurement planning
Failure to attract the Sensitize leadership at the facilities on the
Personal Interest 2 2 4
right target group. need to train the right staff.
Improve custom- Attrition Dissatisfaction 2 2 4 Continuous on-job training
er relationship Inaccurate/Biased Knowledge management
management information during
Use of inaccurate tools/Methods 2 2 4 Recruitment of competent consultants to
customer satisfaction
surveys carry out customer satisfaction survey.
Strengthen the Inadequate funds Budget constraints 2 1 2 Adequate procurement planning
capacity of SSD   Unpaid debts        

c) Internal Business Processes and Systems

Sources/Causes Score
Risk/ (Opportunity)
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood

Strategic Plan 2019 – 2024

 Sources/Causes Score
Risk/ (Opportunity)
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood
Stock outs Proper demand data
Increased competition Enhance contract management.
Poor quantification High quality cost effective products.
Unreliable demand data. Customer relation management.
Loss of business 3 1 3

Strategic Plan 2019 – 2024

Withdrawal of development partners. Advocacy for more funds.
Assured source of fund planned and bud-
Delay in disbursement of funds
Strengthen se- geted.
lection, demand Insufficient budget/resources Constant engagement with the government.
forecasting and
quantification Overstocking 6 Proper demand data
Change of treatment guideline/reg- Cus- Contract management.
imen. tom-
er High quality cost effective products.
Expiries 3 2 rela-
Erratic demand patterns tion
  man-
age-
ment.

Strengthen QA Poor storage of flammable products GWPs

processes and Proper maintenance and service electrical
Electrical failure
systems through- Fire 3 2 6 appliances.
out the supply Sabotage by staff Insurance.
chain
  Satisfy the employees
Hacking Strengthen computer systems security.
Support KEM- Cyber attacks Weaknesses in computer systems. 3 1 3 Satisfied employees.
SA management Disgruntled employees  
systems and
Insecure borders Secure premises
processes through
automation and Insecurity and terror- Intercommunity clashes. Insure KEMSA assets
3 1 3
innovation ism Political unrest  
Unsecured premises.  

75
 Score

76
Risk/ (Opportunity) Sources/Causes
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood
Support KEM- Inability to disseminate correct KEM-
Enhance information privacy
SA management Negative publicity SA narrative.
systems and Gutter press Media training
3 2 6
processes through
Natural calamities Strengthen computer systems security.
automation and Loss of data
innovation Fire and Hacking Offsite data backup
d) Strategic Partnerships
Sources/Causes Score Treatment Strategy/Action
Risk/ (Opportunity)
Strategy Likeli-
Description Impact Overall
hood
Negative publicity Manage media content
Lack of transparency and account-
Compliance to partner requirements
ability
Develop and
sustain transfor- Failure to meet expectations Monitor and evaluate performance regularly
mational rela- Failure in collabora- Host country policies Adhere to partner guidelines and policies
3 1 3
tionships with tion by partners Non-compliance to partner policies
development  
and guidelines
partners.
Legislations  
Poor organizational performance  
Poor organizational systems  
Inadequate funds to Low internal revenues
Ensure availability of budgets and funds to
support collaboration Reduced government support 2 1 2
support strategic partner engagement
activities Changing spending priorities
Leverage on the
Lack of inclusivity in strategic deci-
strength of local Lack of Management Ensure internal collaboration in strategic
sion making 3 1 3
manufacturers /leadership support decision making
and industry Resistance to change
players. Lack of non-pharm testing mecha-
nisms
Low quality 3 2 6 Enforce quality requirements
Failure to adhere to regulatory re-
quirements

Strategic Plan 2019 – 2024

 Sources/Causes Score
Risk/ (Opportunity)
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood

Monopoly Standardize the prices of products

Build and sustain
Increased product
partnerships with 3 2 6
prices
key stakeholders Legislations Standardize product range

Strategic Plan 2019 – 2024

e) Leadership and Governance
Sources/Causes Score
Risk/ (Opportunity)
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood
Expiry of term
Lack of a fully consti-
Bureaucratic appointment procedure 2 3 6 Lobby for legislation and appointment
Provide assurance tuted board & Amendment of law
on internal con-
trols, governance Enhanced commercial activities i.e.
and risk manage- Aggressive debt collection
Delayed collection
ment systems Inadequate funds 2 3 6 Enhanced sales
Reduced donor funding
Increased SSD sales activities
2. Enhance donor engagements
Develop and implement employee succes-
Employee turnover Staff attrition 3 1 3
Develop effec- sion plans
tive Human Cap- Weak leadership (vertical/horizon-
ital Management Poor work culture/ tal)
Systems 2 2 4 Implement change management programs
ethics Lack of motivation

Implement training and development pro-

Staff attrition
gram
Skills gap Change in technology and business 2 2 4
Develop and implement employee succes-
Strengthen man- environment
sion plans
agement systems
for enhanced Develop and implement a fraud policy
efficiency Theft ,Fraud and Enforce the whistle blowing policy
Weak controls 3 1 3
embezzlement Staff sensitization
Improve controls and systems
Strengthen Disruption of oper-

77
Natural and manmade disasters 3 2 6 Implementation of BCM programs
ERM ations
 Score

78
Risk/ (Opportunity) Sources/Causes
Strategy Likeli- Treatment Strategy/Action
Description Impact Overall
hood
Strengthen
public opinion, Political interferences Have constant media engagements
attitude and Negative publicity Disgruntled staff 3 2 6 Implement social media campaigns
behavior of key Vested business interest Stakeholders’ engagement
stakeholders
Annex 3: Key Achievement Highlights per Department/Function
Best Ever
2018/2019 %age
Directorate / Unit of Mea- performance
Performance Indicator Target Re- Achieve- Comment
Department sure during the
vised ment rating
period
Mitigated Enterprise risks (Fully and Fully 50% 29% 58% Fair
Audit Percentage
Partially) Partially 50% 26% 52% Fair
Percentage Re-
98% 76% 78% Good
Customer Complaints Response and sponse 1 day
Customer Service
Resolution Cycle Times (Days) Percentage Reso-
90% 51% 57% Fair
lution 5 days
Order Turnaround Time (Hospitals Days 7.0 9.1 77% Good
Customer Service
& RHFs) Days 10.0 15.2 66% Fair
Order Fill Rate Customer Service Percentage 90% 78% 87% Good
Commercial Di-
Strategic partners (Cumulative) Number 12 11 92% Good
rector

Level of capitalization (Ksh) Finance Ksh 60% Fair

14,000,000,000 8,461,576,303
Average age of debt (days) Finance Days 90 149 60% Fair

Annual Sales Revenue Finance Ksh 104.% Very Good

5,700,000,000 5,911,694,376
Annual sales of services (Procure-
ment, warehousing and distribution Finance Ksh 2,000,000,000 1,550,925,801 78% Good
of commodities) - Ksh
Employee satisfaction index HR Percentage 80% 75% 94% Good
Amended KEMSA Act in place Legal Percentage 100% 100% 100% Very good

Strategic Plan 2019 – 2024

 Best Ever
2018/2019 %age
Directorate / Unit of Mea- performance
Performance Indicator Target Re- Achieve- Comment
Department sure during the
vised ment rating
period
Amended Board and committee
Legal Percentage 100% 25% 25% Poor
charters
A forecasting ERP module in place PCI Percentage 100% 50% 50% Fair

Strategic Plan 2019 – 2024

Stock Holding policy in place and
PCI Percentage 100% 100% 100% Very good
implemented
Supplier performance appraisal tool
Procurement Percentage 100% 90% 90% Good
in place
Value Market share (County Busi-
Sales & Marketing Percentage 75% 73% 97% Good
ness)
Customers on board (Counties & Number 47 46 98% Good
Sales & Marketing
Hospitals) Number 80 107 134% Excellent
No. of regional stakeholder forums
Sales & Marketing Number 3 6 200% Excellent
(Annual)
Customer retention rate (Financial
Sales & Marketing Percentage 95% 96% 101% Very good
Year)*
Customer Satisfaction index Sales & Marketing Percentage 82% 83% 101% Very good
No. of new products (Cumulative Sales & Marketing
Number 200 157 79% Good
New) & SSD
No. of key accounts managers ap- Sales & Marketing
Number 8 6 75% Good
pointed (Cumulative) & SSD
No. of Continuous Medical Educa- Sales & Marketing
Number 12 6 50% Fair
tion (CMEs) conducted & SSD
No of Reported security incidences
Security Number 4 8 200% Excellent
(Annual)
No of SSD customers SSD Number 250 205 82% Good

79
80 Strategic Plan 2019 – 2024