The United States Agency for International Development, Office of Inspector General (USAID OIG) continues to provide independent oversight of U.S.-funded foreign assistance programs. Over the past several weeks, USAID OIG led a field operation in Kenya focused on identifying diverted U.S.-funded medical commodities within the country’s commercial pharmaceutical supply chain. The operation was conducted in coordination with Kenya’s Pharmacy and Poisons Board (PPB), Kenya’s Directorate of Criminal Investigations (DCI), the National Association of Boards of Pharmacy (NABP), and the U.S. Embassy in Nairobi, with instrumental support from its Regional Security Office (RSO).
The USAID OIG-led operation targeted 18 pharmaceutical premises across Kenya. Enforcement actions included two arrests, 11 individuals being compelled to report for further investigative or court proceedings, and the closure and/or sealing of at least four pharmacies for various illegal schemes and regulatory violations.
USAID OIG and its investigative partners seized thousands of medical commodities, including more than 2,000 tablets of co-trimoxazole antibiotics that investigators identified as appearing to originate from the Kenya Medical Supplies Authority (KEMSA) but were recovered outside their intended distribution channels. Investigators also seized hundreds of other expired, defective, unregistered, improperly distributed, or otherwise noncompliant prescription tablets, capsules, and diagnostic test strips. Some of the seized commodities are suspected of having been diverted from U.S.-funded foreign assistance and global health programs, including those implemented by United Nations agencies. Investigators also identified indicators of cross-border diversion involving medical commodities recovered in Kenya that were intended for distribution outside the country. USAID OIG investigators and their counterparts were able to identify and trace certain diverted commodities from their retail location further upstream in the supply chain, which resulted in additional inspections, seizures, and collection of business and supply chain records.
This operation demonstrates how existing partnerships and collaboration across law-enforcement, regulatory, diplomatic, and technical organizations can support coordinated investigative and enforcement efforts wherever U.S. foreign assistance is at risk.
USAID OIG will continue to work with its U.S. and international counterparts to investigate complex fraud and diversion schemes involving humanitarian and global health commodities. These efforts will help ensure that critical commodities reach intended beneficiaries while protecting U.S. taxpayer dollars and advancing U.S. interests and security at home and abroad.
To confidentially report allegations of fraud, corruption, diversion, and sexual exploitation and abuse involving U.S.-funded foreign assistance, please visit https://oig.usaid.gov/report-fraud.