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February 15, 2026
1d ago

Kemsa loses Sh1bn in HIV drug contract legal dispute

Kemsa loses Sh1bn in HIV drug contract legal dispute

The contract targeted fixed-dose antiretroviral combinations used in the HIV programme...

✨ Key Highlights

The Kenya Medical Supplies Agency (Kemsa) has lost KSh1 billion in a legal dispute over an HIV drug contract with Universal Corporation Limited (UCL), with a court ordering the sum to be seized from Kemsa’s bank account. This follows a direct procurement deal signed on March 14, 2022, for life-saving HIV drugs that led to a protracted legal battle.

  • Kemsa was ordered to pay Universal Corporation Limited (UCL) USD 8.33 million (KSh1 billion) plus interest after an arbitration tribunal ruled in UCL's favor.
  • The dispute arose from a 2022 contract for HIV antiretroviral drugs, which Kemsa later denied procuring, despite UCL claiming to have delivered the consignments.
  • The High Court adopted the arbitral award as a judgment on April 17, 2025, leading to garnishee orders against Kemsa's National Bank of Kenya account for KSh1 billion on September 26, 2025.
  • Kemsa's attempt to involve the National Treasury and the Attorney-General to cover the costs was rejected, with the court stressing Kemsa's independent legal personality and liability.

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