Kenya Medical Supplies Authority Act

This Act may be cited as the Kenya Medical Supplies Authority Act.

Jurisdiction: Kenya
Instrument: Act or statute
Citation: Cap. 260
Version: 31 Dec 2022
Language: en
Official source: View official record ↗

Source attribution: Source: Kenya Law

Statute overview

About this statute

This Act may be cited as the Kenya Medical Supplies Authority Act. This section defines terms used in the Act, including Authority, Board, Cabinet Secretary, director, drugs, medical supplies, and strategic reserve stock (at least six months' stocks). The Board may appoint officers and other staff necessary for the proper discharge of its functions, on terms it determines and upon the advice of the Salaries and Remuneration Commission. The Board may, by resolution, delegate its powers or functions to committees or to any member, officer, employee or agent of the Authority. Directors, officers, employees, agents and servants of the Authority are not personally liable for acts or omissions done bona fide in executing functions, powers or duties under the Act; the Board remains liable to pay compensation or damages to any person for injury caused by exercise of powers or failures in work.

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Provisions of Kenya Medical Supplies Authority Act

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Part I

PRELIMINARY

1
PRELIMINARY - 1. Short title
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This Act may be cited as the Kenya Medical Supplies Authority Act.

Section 1. Short title Section This Act may be cited as the Kenya Medical Supplies Authority Act.
2
PRELIMINARY - 2. Interpretation
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This section defines terms used in the Act, including Authority, Board, Cabinet Secretary, director, drugs, medical supplies, and strategic reserve stock (at least six months' stocks).

Section 2. Interpretation Section In this Act, unless the context otherwise requires— "Authority" means Kenya Medical Supplies Authority as established under section 3 ; "Board" means the Board of Directors established under section 5 ; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to medical supplies; "director" means a director of the Board appointed under section 5 ; "drugs" has meaning assigned to it in the Pharmacy and Poisons Act (Cap. 244); "medical supplies" refers to and includes products or materials used in the delivery of health care services to namely pharmaceuticals, non pharmaceuticals, neutraceuticals, vaccines and therapeutic antisera, medical equipment and devises, medical appliances and materials, health technologies, laboratory supplies and reagents, dental materials, hospital consumables, and any other material or equipment as may be necessary for the delivery of health care services in Kenya; "strategic reserve stock" means at least six months stocks of a list of prescribed medical supplies to be identified and updated as and when required by the Cabinet Secretary in consultation with the Authority.

Part II

THE KENYA MEDICAL SUPPLIES AUTHORITY

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THE KENYA MEDICAL SUPPLIES AUTHORITY - 10. Staff of the Authority
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The Board may appoint officers and other staff necessary for the proper discharge of its functions, on terms it determines and upon the advice of the Salaries and Remuneration Commission.

Section 10. Staff of the Authority Section The Board may appoint such officers and other staff as are necessary for the proper discharge of its functions under this Act, upon such terms and conditions of service as it may determine, upon the advice of the Salaries and Remuneration Commission.
11
THE KENYA MEDICAL SUPPLIES AUTHORITY - 11. Delegation by the Board
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The Board may, by resolution, delegate its powers or functions to committees or to any member, officer, employee or agent of the Authority.

Section 11. Delegation by the Board Section The Board may, by resolution either generally or in any particular case, delegate to any committee or to any member, officer, employee or agent of the Authority, the exercise of any of the powers or the performance of any of the functions or duties of the Authority under this Act or under any other written law.
12
THE KENYA MEDICAL SUPPLIES AUTHORITY - 12. Protection from personal liability
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Directors, officers, employees, agents and servants of the Authority are not personally liable for acts or omissions done bona fide in executing functions, powers or duties under the Act; the Board remains liable to pay compensation or damages to any person for injury caused by exercise of powers or failures in work.

Section 12. Protection from personal liability Section 12(1) No matter or thing done by any director of the Authority or by any officer, employee, agent or servant thereof shall, if the act or omission was done bona fide for the purpose of executing a function, power or duty under the Act, render such member, officer, employee, agent or servant personally liable to any action, claim or demand whatsoever. Section 12(2) The provisions of subsection (1) shall not relieve the Board of the liability to pay compensation or damages to any person for any injury to him, his property or any of his interests caused by the exercise of any power conferred by this Act or by the failure, whether wholly or partially, or any work.
13
THE KENYA MEDICAL SUPPLIES AUTHORITY - 13. Common seal
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The Board must keep the Authority's common seal in custody and the seal may only be used on the Board's order; affixing must be authenticated by signatures of the Chief Executive Officer and the Corporation Secretary, with delegation and nomination rules for absence.

Section 13. Common seal Section 13(1) The common seal of the Authority shall be kept in such custody as the Board may direct and shall not be used except on the order of the Board. Section 13(2) The affixing of the common seal of the Authority shall be authenticated by the signature of the Chief Executive Officer and the Corporation Secretary and any document not required by law to be made under seal and all decisions of the Board may be authenticated by the signature of the Chief Executive Officer or the signature of the Corporation Secretary upon delegation by the Chief Executive Officer. Section 13(3) Notwithstanding the provisions of subsection (2) the Board shall, in the absence of either the Chairperson or the Chief Executive Officer in a particular matter, nominate one member to authenticate the seal on behalf of either the Chairperson or the Chief Executive Officer. Section 13(4) The common seal of the Authority when affixed to a document and duly authenticated shall be judicially noticed and unless the contrary is proved, any necessary order or authorization by the Board under this section shall be presumed to have been duly given. [Act No. 5 of 2019 , Sch.]
3
THE KENYA MEDICAL SUPPLIES AUTHORITY - 3. Establishment of the Authority
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Establishes the Kenya Medical Supplies Authority.

Section 3. Establishment of the Authority Section 3(1) There is established an Authority to be known as the Kenya Medical Supplies Authority. Section 3(2)(a) suing and being sued; Section 3(2)(b) purchasing, charging and disposing of movable and immovable property; Section 3(2)(c) borrowing money; Section 3(2)(d) entering into contracts; Section 3(2)(e) doing or performing all such other acts necessary for the proper performance of its functions under this Act. Section 3(3) The Authority shall be the successor to the Kenya Medical Supplies Agency established under the State Corporations Act ( Cap. 446 ).
4
THE KENYA MEDICAL SUPPLIES AUTHORITY - 4. Functions of the Authority
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The Authority is empowered to procure, store, distribute and support supply chains for drugs and medical supplies, to establish distribution networks and partnerships with county governments, and to collect and report supply-system information; the Cabinet Secretary determines requirements for public health facilities; persons responsible for procurement/distribution in public facilities who contravene this section commit an offence liable to a fine up to two million shillings or imprisonment up to five years, or both.

Section 4. Functions of the Authority Section 4(1)(a) procure, warehouse and distribute drugs and medical supplies for prescribed public health programmes, the national strategic stock reserve, prescribed essential health packages and national referral hospitals; Section 4(1)(b) establish a network of storage, packaging and distribution facilities for the provision of drugs and medical supplies to health institutions; Section 4(1)(c) enter into partnership with or establish frameworks with county Governments for purposes of providing services in procurement, warehousing, distribution of drugs and medical supplies; Section 4(1)(d) 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 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; Section 4(1)(e) support county governments to establish and maintain appropriate supply chain systems for drugs and medical supplies. Section 4(2) The Cabinet Secretary shall, in consultation with the Authority and the appropriate county government organs, determine the requirement of drugs and medical supplies in public health facilities. Section 4(3)(a) the drug being duly registered by the Board; and Section 4(3)(b) the drugs and medical supplies meet the standards of quality and are efficacious as authorized by the Board. Section 4(4) A person responsible for the procurement and distribution of drugs and medical supplies in a national or county public health facility and who contravenes provisions of this section, commits an offence and is liable on conviction to a fine not exceeding two million shillings or to imprisonment for a term not exceeding five years, or to both. [Act No. 5 of 2019 , Sch.]
5
THE KENYA MEDICAL SUPPLIES AUTHORITY - 5. Board of Directors
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The Chairperson and directors appointed under subsection (1)(e) serve three-year terms and may be re-appointed once for a further three-year term; those persons are appointed by the Cabinet Secretary, who must take into account regional, gender and skills balance.

Section 5. Board of Directors Section 5(1)(a) have at least a university degree in a relevant discipline; Section 5(1)(a)(i) have at least a university degree in a relevant discipline; Section 5(1)(a)(ii) have at least fifteen years' experience in matters relating to healthcare, business management or public administration; and Section 5(1)(a)(iii) satisfy the requirements of Chapter Six of the Constitution. Section 5(1)(b) the Principal Secretary of the ministry for the time being responsible for health or a representative designated in writing by the Principal Secretary; Section 5(1)(c) the Principal Secretary, of the ministry for the time being responsible for finance or a representative designated in writing by the Principal Secretary; Section 5(1)(d) deleted by ActNo. 5 of 2019, Sch.; Section 5(1)(e) have at least a university degree in a relevant discipline; Section 5(1)(e)(i) have at least a university degree in a relevant discipline; Section 5(1)(e)(ii) have at least ten years' experience in management or in the health sector; and Section 5(1)(e)(iii) satisfy the requirements of Chapter Six of the Constitution. Section 5(1)(ea) have at least a university degree in a relevant discipline; Section 5(1)(ea)(i) have at least a university degree in a relevant discipline; Section 5(1)(ea)(ii) have at least ten years' experience in management or in the health sector; and Section 5(1)(ea)(iii) satisfy the requirements of Chapter Six of the Constitution; Section 5(1)(f) the chief executive officer of the Authority who shall be an ex officio member. Section 5(2) Deleted by ActNo. 5 of 2019, Sch. Section 5(3) Deleted by ActNo. 5 of 2019, Sch. Section 5(4)(a) a procurement or supply chain management specialist; Section 5(4)(b) a pharmacist experienced in drug and medical supplies management; and Section 5(4)(c) one person with knowledge and experience in finance or commerce. Section 5(5) The Chairperson and the directors appointed under subsection (1)(e) shall, serve for a term of three years, and shall be eligible for re-appointment for one further term of three years. Section 5(6) The procedure for the conduct of business and affairs of the Board shall be as set out in the Schedule. Section 5(7) The persons referred to in subsection (1)(e) shall be appointed by the Cabinet Secretary, taking into account regional, gender and skills balance. [Act No. 5 of 2019 , Sch.]
6
THE KENYA MEDICAL SUPPLIES AUTHORITY - 6. Powers of the Board
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The Board has a broad set of powers to manage the Authority, including control of assets, setting expenditures, receiving funds, levying fees, opening bank accounts, investing funds, creating subsidiaries for commercial supply, partnering with other bodies, and performing other necessary activities.

Section 6. Powers of the Board Section 6(1) The Board shall have all powers necessary for the proper performance of the functions of the Authority under this Act. Section 6(2)(a) control, supervise and administer the assets of the Authority in such manner as best promotes the purpose for which the Authority is established; Section 6(2)(b) determine the provisions to be made for capital and recurrent expenditure and for the reserves of the Authority; Section 6(2)(c) receive any grants, gifts, donations or endowments and make legitimate disbursements there from; Section 6(2)(d) levy fees for services rendered by the Authority as may be determined from time to time by the Board; Section 6(2)(e) open such banking accounts for the funds of the Authority as may be necessary; Section 6(2)(f) invest any funds of the Authority not immediately required for its purposes in the manner provided in section 18 ; Section 6(2)(g) incorporate, develop and operate a division or subsidiary of the Authority for the procurement, storage and supply of medical supplies to health facilities and institutions on a competitive and commercial basis but such commercial service shall be conducted without prejudice to the ordinary non-commercial supply system to public facilities; Section 6(2)(h) enter into association with such other bodies or organizations within or outside Kenya as it may consider desirable or appropriate in furtherance or for the performance of its functions under this Act; Section 6(2)(i) perform or undertake any other activity that may be necessary for the fulfillment of any of the functions of the Authority under this Act.
7
THE KENYA MEDICAL SUPPLIES AUTHORITY - 7. Remuneration of directors
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The Authority must pay the directors remuneration, fees or allowances as it determines on the advice of the Salaries and Remuneration Commission.

Section 7. Remuneration of directors Section The Authority shall pay the directors such remuneration, fees or allowances as it may determine on the advice of the Salaries and Remuneration Commission.
8
THE KENYA MEDICAL SUPPLIES AUTHORITY - 8. Chief Executive Officer
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Defines the appointment, qualifications, term, and duties of the Chief Executive Officer of the Authority: recruited competitively by the Board, appointed by the Cabinet Secretary, terms determined by the Board on advice of the Salaries and Remuneration Commission; lists qualifications; sets duties including ex officio Board membership (no vote), secretary role, operational management, staff administration, funds management, implementation of policies, development of plans, other Board-determined functions; serves four-year term subject to satisfactory performance and may be re-appointed for one further term.

Section 8. Chief Executive Officer Section 8(1) There shall be Chief Executive Officer of the Authority who shall be competitively recruited by the Board and appointed by the Cabinet Secretary and whose terms and conditions of service shall be determined by the Board, upon the advice of the Salaries and Remuneration Commission, in the instrument of appointment or otherwise in writing from time to time. Section 8(2)(a) holds a minimum first degree in Pharmacy, Medicine, Business Management, Finance, Supply Chain Management or any other related field from a recognized University. Section 8(2)(b) holds a postgraduate degree in business management or postgraduate training in supplies management; Section 8(2)(c) possesses at least five years experience in senior management; and Section 8(2)(d) satisfies the requirements of chapter six of the Constitution. Section 8(3)(a) be an ex officio member of the Board with no right to vote; Section 8(3)(b) be the secretary to the Board; and Section 8(3)(c) day to day running and operation of the Authority; Section 8(3)(c)(i) day to day running and operation of the Authority; Section 8(3)(c)(ii) administration, organization and control of staff of the Authority; Section 8(3)(c)(iii) management of funds, property and affairs of the Authority; Section 8(3)(c)(iv) implementation of policies and programmes of the Authority and reporting thereon to the Board; Section 8(3)(c)(v) development of operational plans for achieving the objectives of the Authority; and Section 8(3)(c)(vi) performance of any other function necessary for the implementation of this Act, as may be determined by the Board. Section 8(4) The chief executive officer shall, serve for a term of four years upon satisfactory performance and shall be eligible for re-appointment by the Cabinet Secretary for one further term. [Act No. 25 of 2015 , Sch, Act No. 5 of 2019 , Sch.]
9
THE KENYA MEDICAL SUPPLIES AUTHORITY - 9. Removal of Chief Executive Officer
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The Chief Executive Officer may be removed for inability to perform the functions of the office arising out of physical or mental incapacity.

Section 9. Removal of Chief Executive Officer Section inability to perform the functions of the office arising out of physical or mental incapacity;
9A
THE KENYA MEDICAL SUPPLIES AUTHORITY - 9A. Corporation Secretary
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The Authority must have a Corporation Secretary who is competitively recruited by the Board; the Board must determine the Secretary's terms and conditions upon advice of the Salaries and Remuneration Commission. The Corporation Secretary must perform listed duties including guidance, assistance, custody of the seal, maintaining a conflicts register, ensuring legal awareness, and facilitating shareholder communication.

Section 9A. Corporation Secretary Section 9A(1) There shall be Corporation Secretary of the Authority who shall be competitively recruited by the Board and whose terms and conditions of service shall be determined by the Board upon the advice of the Salaries and Remuneration Commission, in the instrument of appointment or otherwise in writing from time to time. Section 9A(2)(a) provide guidance to the Board on their duties and responsibilities and on matters of governance; Section 9A(2)(b) assist the Board in carrying out its work; Section 9A(2)(c) be the custodian of the seal of the organization and account to the Board for its use; Section 9A(2)(d) maintain and update the register of conflicts of interest; Section 9A(2)(e) ensure that Board members are aware of all relevant laws affecting the organization; and Section 9A(2)(f) facilitate effective communication between the organization and the shareholders.

Part III

FINANCIAL PROVISIONS

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FINANCIAL PROVISIONS - 14. Funds of the Authority
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Section 14 lists sources of the Authority's funds (Parliamentary appropriations, fees/monies/assets accruing or vesting in the Authority, donations/loans, and monies payable under law) and provides that, unless National Treasury directs otherwise, year-end balances shall be retained for the Authority's purposes.

Section 14. Funds of the Authority Section 14(1)(a) such monies as may be appropriated by Parliament through a budget line to the authority for purposes of carrying out the functions of the Authority; Section 14(1)(b) such fees, monies or assets as may accrue to or vest in the Authority in the course of the exercise of its powers or the performance of its functions under this Act or under any written law; Section 14(1)(c) all monies from any other source provided for or donated or lent to the Authority; and Section 14(1)(d) such monies as may be payable to the Authority pursuant to this Act or any other written law. Section 14(2) Spent. Section 14(3) Unless the National Treasury otherwise directs, the balance of the funds of the Authority at the end of the financial year shall be retained for the purposes for which the Authority is established.
15
FINANCIAL PROVISIONS - 15. Financial year
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The Authority's financial year is the twelve‑month period ending on 30 June each year.

Section 15. Financial year Section The financial year of the Authority shall be the period of twelve months ending on the thirtieth June in each year.
16
FINANCIAL PROVISIONS - 16. Annual estimates
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The Board must prepare annual revenue and expenditure estimates at least three months before each financial year, approve them before that year, submit them to the Cabinet Secretary for approval, and must not increase them after Cabinet Secretary approval without the Cabinet Secretary's consent.

Section 16. Annual estimates Section 16(1) At least three months before the commencement of each financial year, the Board shall cause to be prepared estimates of the revenue and expenditure of the Authority for that year. Section 16(2)(a) the payment of the salaries, allowances and other charges in respect of directors and staff of the Authority; Section 16(2)(b) the payment of pensions, gratuities and other charges in respect of the staff of the Authority; Section 16(2)(c) the proper maintenance of the buildings and grounds of the Authority; Section 16(2)(d) the maintenance, repair and replacement of the equipment and other property of the Authority; and Section 16(2)(e) the creation of such reserve funds to meet future or contingent liabilities in respect of retirement benefits insurance or replacement of buildings or equipment, or in respect of such other matter as the Board may deem appropriate. Section 16(3) The annual estimates shall be approved by the Board before the commencement of the financial year to which they relate and shall be submitted to the Cabinet Secretary for approval and after the Cabinet Secretary’s approval, the Board shall not increase the annual estimates of the Authority without the consent of the Cabinet Secretary.
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FINANCIAL PROVISIONS - 17. Accounts and audit
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The Board must ensure proper books and records of the Authority's income, expenditure and assets are kept, including an annual statement of income and expenditure and an annual balance sheet.

Section 17. Accounts and audit Section 17(1) The Board shall cause to be kept all proper books and records of accounts of the income, expenditure and assets of the Authority. Section 17(2)(a) a statement of the income and expenditure of the Authority during that year; and Section 17(2)(b) a balance sheet of the Authority on the last day of that year. Section 17(3) The accounts of the Authority shall be audited and reported upon in accordance with the Public Audit Act (Cap. 412B).
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FINANCIAL PROVISIONS - 18. Investment of funds
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The Board may invest any funds of the Authority in securities or banks that trustees may lawfully use for trusts or that the National Treasury approves.

Section 18. Investment of funds Section The Board may invest any of the funds of the Authority in securities, in which for the time being trustees may by law invest trust funds, or in any other securities or banks which the National Treasury may, from time to time, approve for that purpose.

Part IV

MISCELLANEOUS PROVISIONS

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MISCELLANEOUS PROVISIONS - 19. Manner of discharge of functions
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The Authority may make its facilities available for educational purposes on terms and conditions set by the Board.

Section 19. Manner of discharge of functions Section 19(1)(a) maximum efficiencies; Section 19(1)(b) benefit from economies of scale; Section 19(1)(c) efficacy, safety, quality and affordability of drugs and medical supplies procured; Section 19(1)(d) a steady supply of drugs and medical supplies to public health facilities; Section 19(1)(e) maintenance and sustenance of strategic reserves of essential medicines and medical supplies; Section 19(1)(f) application of sound commercial principles in the procurement, storage and distribution of drugs and other medical supplies; Section 19(1)(g) the carrying out of technical or laboratory analysis of drugs and medical supplies to determine their suitability for procurement, use, storage or disposal by the Authority so as to ensure their compliance with the standards set by the relevant law; Section 19(1)(h) timely distribution of drugs and medical supplies to health facilities; Section 19(1)(i) a feedback mechanism to its consumers; Section 19(1)(j) an effective monitoring and evaluation mechanism; and Section 19(1)(k) availability of information relating to its operations. Section 19(2) The Authority may make available its facilities for use for educational purposes on such terms and conditions as the Board may consider necessary.
20
MISCELLANEOUS PROVISIONS - 20. Duty of disclosure
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Public officers must disclose to the Authority any information the Authority may require for it to perform its functions under this Act.

Section 20. Duty of disclosure Section Every public officer shall be under a duty to disclose to the Authority any information that the Authority may require for the proper performance of its functions under this Act.
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MISCELLANEOUS PROVISIONS - 21. Regulations
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The Cabinet Secretary may, on recommendation of the Authority, make Regulations for carrying out this Act, including prescribing matters and providing operational rules listed in Section 21(2)(a)-(f).

Section 21. Regulations Section 21(1) The Cabinet Secretary may, on recommendation of the Authority, make Regulations generally for the better carrying out of the objects of this Act. Section 21(2)(a) prescribe anything required by this Act to be prescribed or prohibit anything required by this Act to be prohibited; Section 21(2)(b) provide manner of operationalisation of any subsidiary or commercial service of the Authority; Section 21(2)(c) provide for the manner in which the Authority may facilitate counties in adopting appropriate systems for requisition of drugs and medical supplies from the Authority to their health facilities; Section 21(2)(d) provide for the manner of determination of drugs and medical supplies needs for the national and county governments; Section 21(2)(e) provide for the manner in which the Authority shall collect and disseminate data on drugs and medical supplies consumption; Section 21(2)(f) provide for the composition and quantities of the drugs and medical supplies to be stored in the national strategic reserve and the manner of utilizing the reserve.

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