Kenya unveils Five-Year plan to boost local drug manufacturing

Health products account for about 40% of expenditure at the primary healthcare level and more than 20% at tertiary care facilities.

Kenya has launched a five-year strategy aimed at expanding local production of medicines, vaccines and medical technologies, as the government seeks to reduce dependence on imports and strengthen the country’s health security.

The Kenya Health Products and Technologies Local Manufacturing Strategy 2026-2030 forms part of the government’s broader Taifa Care reforms, which also include health financing, primary healthcare and digital health initiatives.

Speaking during the launch, Dr. Ouma Oluga, Permanent Secretary for Medical Services who represented Health Cabinet Secretary Aden Duale said local manufacturing was critical to sustaining the wider health reforms and reducing Kenya’s reliance on imported medical products.

“Local manufacturing is the floor beneath these reforms,” Oluga said.

Kenya imports about 70% of its pharmaceutical products and nearly all its vaccines, according to the Ministry of Health. The domestic market for health products and technologies is estimated at about USD1.2 billion annually, with imports accounts for roughly USD760 million.

Health products account for about 40% of expenditure at the primary healthcare level and more than 20% at tertiary care facilities, the ministry said.

The strategy seeks to address longstanding barriers that have constrained domestic manufacturing, including limited access to affordable financing, weak links between research and industrial production, and fragmented procurement systems.

Oluga aid the government was working with the National Treasury, the Kenya Development Corporation and development finance institutions to establish a health manufacturing credit guarantee facility aimed at supporting long-term investment in pharmaceuticals, vaccines, diagnostics and medical devices.

He said the government was also pursuing concessional and blended financing arrangements with institutions including Afreximbank, the African Development Bank and the International Finance Corporation.

The strategy further seeks to strengthen research and development by creating stronger links between universities, research institutions and industry to enable scientific discoveries to be translated into commercially viable products.

The PS said institutions such as the Kenya Medical Research Institute (KEMRI), the Kenya Institute for Primate Research and universities would play a central role in building a pipeline from research to manufacturing.

He said the approach would also support the development of Kenya BioVax into a broader vaccine manufacturing and innovation hub.

Another pillar of the strategy involves consolidating procurement by national and county governments and other healthcare providers to create predictable demand for locally manufactured products.

The government plans to use pooled procurement and multi-year purchase commitments through the Kenya Medical Supplies Authority (KEMSA) and other mechanisms to provide manufacturers with greater certainty and improve access to financing.

Oluga said Kenya would also push for regional procurement frameworks under the East African Community and the African Continental Free Trade Area to help create larger markets for African-made health products.

He said the success of the strategy would ultimately be measured by increased manufacturing capacity, jobs created, medicines produced and improved health security.

“This strategy will not be judged by the document we launch today. It will be judged by the factories built, the jobs created, the medicines produced, and the lives saved,” Oluga said.

Speaking on the same, Dr. Boston Zimba said the plan seeks to boost domestic production of pharmaceuticals and medical technologies in a country that currently imports an estimated 70% to 80% of its medicines.

“Health security cannot depend entirely on supply chains beyond our borders,” Zimba said, noting that the COVID-19 pandemic and Mpox outbreaks exposed vulnerabilities in global supply chains for vaccines, diagnostics and essential medicines.

Zimba lauded Kenya as a regional hub for health manufacturing, with calls for African Union to expand local pharmaceutical production across the continent.

He noted increased domestic production could reduce costs, create jobs and improve access to essential medicines, while reducing exposure to global supply disruptions.

 

 


Discover more from Newsroom Kenya

Subscribe to get the latest posts sent to your email.

Leave a Comment

Your email address will not be published. Required fields are marked *