Kenyan Man Indicted in U.S. Over $650m USAID-Funded Health Supplies Scandal
An indictment filed in the U.S. District Court of South Carolina has accused Kenyan national Eric Ndungu Mwangi and his company, Linear Diagnostics, of systematically stealing HIV test kits and other USAID-funded medical commodities from the Kenya Medical Supplies Authority (KEMSA).
“This was an incredibly complicated investigation, spanning years and an ocean,” said U.S. Attorney Bryan Stirling for the District of South Carolina “These defendants jeopardized a vital public health mission and caused a significant loss to the American taxpayers.”
The case adds fresh scrutiny to KEMSA, an agency already under pressure from years of mismanagement allegations and ongoing reforms.
According to the indictment, Mwangi allegedly diverted supplies between 2015 and 2019, reselling them to Guyanese businessman Davendra Rampersaud of Caribbean Medical Supplies for over $177,000.
Rampersaud then allegedly profited further by securing a sole-source contract with the Guyana Ministry of Health.
While Mwangi awaits trial in Kenya, he faces up to 20 years in prison if convicted on the U.S. charges. Rampersaud was arrested in Miami in 2023, pled guilty, and received time served, three years’ supervised release, and an $84,000 fine.
The indictment, while not implicating KEMSA directly, is the latest development in a strained relationship between the Kenyan agency and USAID.
According to the U.S. Attorney’s Office for the District of South Carolina, Mwangi and his company, Linear Diagnostics (LD), began in 2014 to systematically divert HIV test kits and other medical commodities meant for Kenya’s national supply system.
The stolen products were sold to Rampersaud and his Guyanese company, Caribbean Medical Supplies, Inc. (CMS). In 2015, Rampersaud fraudulently obtained a “Letter of Authority” designating him as an authorized distributor, which enabled him to secure a lucrative sole-source contract with the Guyana Ministry of Health using the illegally acquired goods.
In 2021, USAID cut ties with KEMSA and instead tapped U.S. company Chemonics to deliver its donated medical commodities. That move sparked uproar in Kenya, leading to delays that left HIV drugs stuck at Mombasa port and created shortages for patients.
At the same time, KEMSA has battled domestic scandals. Allegations of COVID-19 fund misuse, a scathing 2020 audit pointing to “possible fraud,” and the cancellation of a Global Fund mosquito-net tender have triggered waves of energy, technology, infrastructure, and health.
President William Ruto has dissolved KEMSA’s board, suspended its CEO, and pledged sweeping restructuring of the agency.
The scandal also comes against the backdrop of U.S. President Donald Trump’s wider policy pivot away from medical aid toward trade-based engagement.
Trump has repeatedly argued that Africa should build self-sustaining systems rather than rely on foreign aid, a stance that accelerated USAID’s withdrawal from directly funding African health supply chains.
In response, African nations are recalibrating. Kenya has increased its domestic budget for public health, South Africa has leaned on its national insurance reform plans, and Nigeria has been pushing through local pharmaceutical production initiatives.
These efforts reflect a broader continental recognition that long-term health security cannot depend on donor-driven supply chains vulnerable to political shifts in Washington.
For Kenya, the Mwangi indictment is a reminder of both the vulnerabilities within its own systems and the pressures of a global health sector increasingly shaped by trade and accountability.
As the Trump administration doubles down on aid reduction in favor of commerce, African governments face the urgent task of balancing internal reforms with new strategies to fund critical health services.
