MIRA INFORM REPORT

Report No. :	339353
Report Date :	09.09.2015

IDENTIFICATION DETAILS

Name :	KEMSA (KENYA MEDICAL SUPLLIES AUTHORITY)
Registered Office :	Commercial Street, Industrial Area, P. o. Box 47715 GPO 00100, Nairobi
Country :	Kenya
Date of Incorporation :	10.03.2000
Com. Reg. No.:	17/2000
Legal Form :	Limited Corporation
Line of Business :	Mandate to -Procure, warehouse and distribute drugs and medical supplies for prescribed public health programs, the national strategic stock reserve, prescribed essential health packages and national referral hospitals -Establish a network of storage, packaging and distribution facilities for the provision of drugs and medical supplies to health institutions. -Enter into partnership with or establish frameworks with County Governments for purposes of providing services in procurement, warehousing, distribution of drugs and medical supplies. -Collect information and provide regular reports to the national and county government’s on the status and cost effectiveness of procurement, the distribution and value of prescribed essential medical supplies delivered to health facilities, stock status and on any other aspects of supply system status and performance which may be required by stakeholders. -Support County Governments to establish and maintain appropriate supply chain systems for drugs and medical supplies.
No. of Employees :	300

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES:

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ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Kenya	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

KENYA - ECONOMIC OVERVIEW

Kenya is the economic and transport hub of East Africa. Kenya’s real GDP growth has averaged around 5% for the past several years. According to recently rebased national statistics, Kenya’s GDP for 2013 was $55.3 billion, placing Kenya among the low middle income countries with per capita income of $1,300. Agriculture remains the backbone of the Kenyan economy, contributing 25% of GDP. About 80% of Kenya’s population of roughly 42 million work at least part-time in the agricultural sector, including livestock and pastoral activities. Over 75% of agricultural output is from small-scale, rain-fed farming or livestock production. While Kenya has a growing entrepreneurial middle class, faster growth and poverty reduction is hampered by corruption and by reliance upon several primary goods whose prices have remained low. Inadequate infrastructure threatens Kenya's long-term position as the largest East African economy, although the KENYATTA administration has prioritized infrastructure development. International financial lenders and donors remain important to Kenya's economic growth and development, but Kenya has also successfully raised capital in the global bond market. Kenya issued its first sovereign bond offering in mid-2014, generating $2 billion at 6% interest; the funds are slated to be used for infrastructure projects. Nairobi has contracted with a Chinese company to begin construction of a new standard gauge railway, but the project allegedly has been beset by corruption and fraud. Unemployment is high at around 40%. The country has chronic budget deficits and is in the process of devolving some state revenues and responsibilities to the counties. Inflationary pressures and sharp currency depreciation peaked in early 2012 but have since abated following low global food and fuel prices and monetary interventions by the Central Bank. Recent terrorism in Kenya and the surrounding region threatens Kenya's important tourism industry.

Source : CIA

Company name
Registered Name:	KEMSA (KENYA MEDICAL SUPLLIES AUTHORITY)
Requested Name:	KEMSA (KENYA MEDICAL SUPLLIES AUTHORITY)
Other Names:	KEMSA
ADDRESS AND TELECOMMUNICATION
Physical Address:	Commercial Street, Industrial Area
Postal Address:	P. o. Box 47715 GPO 00100,
	Nairobi,
Country:	Kenya
Phone:	254-20-3922000
Cell:	254-726618520/21/618/784/85/733605600/606
Fax:	254-20-558100/3922400
Email:	info@kemsa.co.ke/ sales@kemsa.co.ke
Website:	www.kemsa.co.ke
CREDIT OPINION
Financial Index as of December 2014 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments.
LEGAL
Legal Form:		Limited Corporation
Date Incorporated:		10-March-2000
Reg. Number:		17/2000
Budget Capital		KES. 10,000,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Amb. Solomon Karanja		Chairman
Dr. John M. Munyu		CEO
Dr. Khadijah Kassachoon		Principal Secretary
Mr. Francis Musyimi		Director
Mr. Benard Ndung’u		Director
Mr. Hassan Noor Hassan		Director
Ms. Elizabeth Mwashinga		Director
Mr. Fred Wanyonyi		Director
Mr. Philip Omondi		Director
Mr. Charles Juma Ezekiel		Director
Mr. Joshua H. Obell		Director
Ms. Florence Oile		Director
Dr. Nelly Kimani		Director
Mr. Charles Rigoro		Director
Mr. Andrew Onyach		Director
Mr. Waiganjo Karanja		Finance Manager
Mr. Ignatius Kaburu		Manager
Mr. Samuel Okanda		Manager
Mr. Enos Namasaka		Manager
Mr. David Muttu		Manager
Dr. John Aduda		Manager
Government of Kenya		Parent		100%
RELATED COMPANIES
Government of Kenya		Parent.
None		Subsidiary company.
None		Affiliated company.
None		Shareholder of subject firm.
Mombasa, Kisumu, Nakuru, Eldoret, Nyeri, and Garissa		Branches of the firm
OPERATIONS
Mandate to -Procure, warehouse and distribute drugs and medical supplies for prescribed public health programs, the national strategic stock reserve, prescribed essential health packages and national referral hospitals -Establish a network of storage, packaging and distribution facilities for the provision of drugs and medical supplies to health institutions. -Enter into partnership with or establish frameworks with County Governments for purposes of providing services in procurement, warehousing, distribution of drugs and medical supplies. -Collect information and provide regular reports to the national and county government’s on the status and cost effectiveness of procurement, the distribution and value of prescribed essential medical supplies delivered to health facilities, stock status and on any other aspects of supply system status and performance which may be required by stakeholders. -Support County Governments to establish and maintain appropriate supply chain systems for drugs and medical supplies.
Imports:		Worldwide
Exports:		None
Trademarks:		None
Terms of sale:		100% tenders
Main Customers:		Local hospitals, medical firms and organizations
Employees:		300 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Kenya
Location:		Owned premises, 120,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Kenyan Shillings (KES.)
Approx. Ex. Rate:		1 US Dollar = 105.82 Kenyan Shillings
Fiscal Year End:		December 31, 2014
Inflation:		According to information given by independent sources, the inflation at December 31st, 2014 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in KES.)
			2014
Income			2,500,000,000
BANK
Bank Name:		COMMERCIAL BANK LIMITED
Branch:		Kenya
Comments:		None
TRADE REFERENCES
Experiences:		Good
NOTARIAL BONDS None
COMMENTS / ADDITIONAL INFORMATION
This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.60
UK Pound	1	Rs.102.30
Euro	1	Rs.74.61

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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