KENYA PHARMACEUTICAL MARKET

KEY FINDINGS

• Kenya aspires to be a healthy, productive, and globally competitive nation. The country’s Vision 2030 and the Big 4 Agenda Programme launched in 2018 make clear the government’s commitment to support citizens’ health, create opportunities for education and employment, and transform Kenya into an industrialized country by 2030. 

• Developing the pharmaceutical manufacturing sector is a core part of building a progressive and sustainable health-care system that can respond to routine needs and emergencies.

• Kenya is the third largest exporter of pharma products in Africa and the largest exporter in the Common Market for the Eastern and Southern Africa region. Still, due to an uneven distribution of health facilities in the country, 18% of the landmass does not meet the World Health Organization’s criteria for patient access, according to a 2018 study.

• Kenyan government was determined to bolster local manufacturing overall in the country, so it implemented a set of economic and trade policies known as import-substituting industrialisation. Working by subsidizing local producers and taxing foreign exporters, industrial output quadrupled and the number of industrial establishments more than doubled by 1980.

• Diseases such as cancer and diabetes are already accounting for 27% of total deaths and over 50% of total hospital admissions in the country. As a result, the government must prioritize NCDs as a key pillar of their plan to achieve healthcare access for all by 2030.

• The Cabinet has issued a policy directive requiring the Kenya Medical Supplies Authority (KEMSA) to prioritize locally made pharmaceuticals over imports.

• The adoption of telemedicine services and e-pharmacies has grown, especially in urban areas. These digital healthcare platforms provide consultations, prescription services, and the delivery of pharmaceutical products, offering convenience and accessibility.

• The government of Kenya has established Export processing zones (EPZs), which are meant to create an enabling environment for export-oriented investments and promote and facilitate such investments. There are 40 gazetted zones in Kenya at different stages of development. 

• Collaborations between the public and private sectors will persist, aiming to improve access to essential medicines and reduce the financial burden on patients, especially for chronic diseases.

• The PPB is responsible for the registration of pharmaceutical products, including medicines, vaccines, medical devices, and herbal remedies. All pharmaceutical products must undergo a rigorous evaluation process before being granted approval for sale in Kenya.

• Trinity Biotech plc, a leading developer and manufacturer of diagnostic products for the point-of-care and clinical laboratory markets, welcomes the recent decision by the High Court of Kenya to strike out the applications to prevent the company from selling its products in Kenya.

• Disease-specific pharmaceutical and healthcare programs will evolve to further improve access to disease-specific treatments and enhance the quality of care.

• The PPB enforces GMP standards to ensure that pharmaceutical manufacturers meet specific quality and safety requirements during the production of pharmaceutical products. Manufacturers must adhere to international GMP guidelines.

KENYA PHARMACEUTICAL MARKET OVERVIEW

The Kenyan pharmaceutical industry is a dynamic and growing sector with a significant impact on the country's healthcare system. The demand for pharmaceuticals in Kenya is growing rapidly, driven by a number of factors, including an increasing population, rising disposable incomes, and an aging population.

Kenya is heavily reliant on imported medicines, with over 70% of all medicines consumed in the country coming from abroad. This makes the country vulnerable to supply chain disruptions and price fluctuations.

Kenya has a limited capacity to manufacture medicines locally, which makes it reliant on imports. Kenyan pharmaceutical industry lacks adequate infrastructure, including reliable electricity and transportation networks.

Operational challenges affecting domestic pharmaceutical manufacturing include unreliable electricity and water supply, bureaucratic processes, access to funds, and reliance on imported raw materials.

A major factor in the dominance of imported generics in the domestic pharma market is the higher relative prices of locally-produced medicines. Obviously, efforts need to be made to lower production costs in local companies. There is inadequate data on the economics of pharma manufacturing in Kenya and the cost structure of manufacturing operations. In view of this, more in-depth analysis needs to be done to identify ways of making production more efficient. 

Imports meet the bulk of local demand for more sophisticated treatments, even though most locally made medicines are destined for domestic consumption. Over the coming years, rising demand for pharmaceuticals will push the trade balance further into the negative territory, as domestic producers lack the finances to innovate and modernise. The overall import/export figures, however, continue to be skewed by the country's role as a regional trade hub. 

A Kenyan pharmaceutical company, Universal Corporation Limited, has become the first manufacturer in Africa to receiveWorld Health Organization(WHO) approval to produce a lifesaving malaria drug.

Kenya is considering a complete ring fencing of the purchase of pharmaceutical products that can be locally sourced, in a move to cut spending on imports and support local industries.

To encourage investments in the local drugs manufacturing space, the government is keen to stop the import of any drug that can be produced locally.Currently, up to 62 per cent of drugs are being procured locally, with the remaining being imports, according to the Kenya Medical Supplies Authority.

The pharmaceutical industry in Kenya is expanding at a rapid rate and presents enormous opportunities for pharmaceutical companies, manufacturers, and exporters of pharmaceutical machinery to establish themselves in the East African pharmaceutical market.

INTRODUCTION

Kenya’s Vision 2030 and the Big 4 Agenda Programme launched in 2018 made clear Kenya’s intent to have healthy citizens, to provide opportunities for education and employment for the millions joining the labor market annually, and to become an industrialized nation by 2030.

Two policy documents brought into focus the need for the Ministry of Health and the Ministry of Industrialization, Trade and Enterprise Development to work together with other stakeholders to ensure the country builds a competitive local pharmaceutical manufacturing sector.

Kenya has sufficient laws and policies to become a competitive pharmaceutical manufacturing hub in the region. Many new laws have been enacted and many others have been reviewed to create an enabling environment for businesses (both in general and pharmaceutical manufacturing) to establish themselves and thrive.

Kenya laws and policies relate to the health sector function and practice, including the pharmaceutical industry, tax incentives, public procurement-related incentives, lower electricity tariffs, protection of intellectual property (IP) and IP rights, anticounterfeit goods, ethics and anticorruption practices, environmental protection, and land use. 

The Ministry of Health and the Ministry of Industrialization, Trade and Enterprise Development are the two key ministries that are collaborating to realize Kenya’s goal of becoming a regional hub for the manufacturing and distribution of pharmaceutical products.

This partnership should be complemented by other ministries and agencies working to address issues relating to corrupt practices, unreliable utilities (water and electricity from the national grid) for industry, lack of certain specialized skills in the local workforce for pharmaceutical product development and manufacturing processes, and unnecessary complexity in tax regimens.

The average revenue per local manufacturing company in Kenya is low compared to that in other countries. This is largely due to the high cost of utilities and transport of goods and the country’s dependence on imported inputs.

 Operational and scientific research is implemented by pharmaceutical manufacturers in partnership with academia, research institutions, and policymakers. This will provide much-needed evidence for strategic decisions on and investments in processes and products.

Kenya currently supplies approximately half of the pharmaceutical products in the COSMEA (Common Market for Eastern and Southern Africa) region, making it the largest manufacturer.

According to the EAC Regional Pharmaceutical Plan of Action 2017–2027, Kenyan manufacturers currently hold 30 percent of the $1 billion Kenyan pharmaceutical market. There is therefore an opportunity for investors to cater to the remaining 70 percent.

Adequate research funds are made available from a national pool by both the public and private sector to reduce the limitations that hold back research work to find and develop new drugs and technologies in support of the local industry.

The Kenya Export Promotion and Branding Agency (BrandKE) is mandated to promote Kenya’s exports of goods and services and coordinate related activities. It needs to address policy issues with trade partners, address bottlenecks, provide a platform for and actively promote Kenyan pharmaceutical products, and expand access to markets for Kenyan pharmaceutical manufacturers.

Key characteristics and components of the Kenya pharmaceutical market include

Pharmaceutical Manufacturers: The market includes local and international pharmaceutical manufacturers that produce a variety of medications and healthcare products. These manufacturers adhere to regulatory standards and quality control to ensure the safety and efficacy of their products.

Regulatory Framework: The pharmaceutical market in Kenya is subject to regulation by the Pharmacy and Poisons Board (PPB). The PPB is responsible for approving and regulating the production, importation, distribution, and sale of pharmaceutical products to ensure their safety, quality, and efficacy.

Distribution and Supply Chain: The distribution and supply chain is a critical aspect of the pharmaceutical market. It involves wholesalers, distributors, pharmacies, and hospitals that ensure the availability of pharmaceutical products across the country.

Healthcare Providers: Healthcare institutions, including hospitals, clinics, and healthcare practitioners, are the primary users of pharmaceutical products. They prescribe, dispense, and administer medications to patients.

Access to Medicines: Access to essential medicines is a significant concern in Kenya. The pharmaceutical market plays a vital role in ensuring that affordable and essential medicines are available to the population, especially in rural and underserved areas.

KENYA PHARMACEUTICAL MARKET SEGMENTATION

Kenya Pharmaceutical Market By Product Type

• Prescription Drugs
• Over-the-Counter (OTC) Drugs
• Vaccines
• Herbal and Traditional Medicine

Kenya Pharmaceutical Market By Therapeutic Area

• Infectious Diseases
• Chronic Conditions
• Acute Care
• Pain Management

Kenya Pharmaceutical MarketBy End-User

• Hospitals and Clinics
• Pharmacies and Retail Chains
• Government and Public Health Programs
• Individual Consumers

Kenya Pharmaceutical MarketBy Distribution Channel

• Pharmaceutical Wholesalers
• Retail Pharmacies
• E-Pharmacies
• Hospitals and Clinics

KENYA PHARMACEUTICAL MARKETSIZE AND FORECAST

TheKenya Pharmaceutical Marketaccounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.

Kenya has been increasingly focused on promoting local pharmaceutical manufacturing to reduce its reliance on imports. The government has supported investments in local manufacturing facilities, leading to a broader portfolio of locally produced pharmaceuticals.

The growth of health insurance schemes in Kenya has been encouraging more people to seek healthcare services and purchase medications. This trend is improving access to pharmaceutical products, particularly for individuals who are covered by insurance.

Collaborations between the public and private sectors have aimed to improve access to essential medicines, especially for chronic diseases like HIV/AIDS, malaria, and diabetes. These initiatives intend to reduce the financial burden on patients.

KENYA PHARMACEUTICAL MARKETNEW PRODUCT LAUNCH

Point-of-care diagnostics (POCD):POCD devices are being developed to provide rapid, accurate, and affordable diagnostic tools for early detection and monitoring of infectious diseases such as malaria, HIV/AIDS, and tuberculosis. These devices are particularly important for underserved communities in rural areas where access to traditional diagnostic services is limited.

Mobile health (mHealth) solutions:mHealth applications are being developed to improve access to healthcare services and patient engagement. These mHealth solutions include telemedicine platforms for remote consultations, mobile apps for medication reminders and health education, and electronic health records systems to enhance patient data management.

Novel therapeutics for non-communicable diseases (NCDs):Kenyan researchers are developing new treatments for NCDs such as hypertension, diabetes, and cancer. These novel therapeutics aim to provide more effective and affordable treatment options for the growing population of Kenyans affected by NCDs.

KENYA PHARMACEUTICAL MARKET DYNAMICS

The distribution of pharmaceutical goods in Kenya is handled by the Kenya Medical Suppliers Agency. It deals with the circulation of medications to private and general wellbeing offices.

In Kenya, the pharmaceutical industry has also experienced tremendous growth as a result of the health sector’s remarkable expansion in recent years.

To direct the expansion of the health care sector and the pharmaceutical industry, the nation is concentrating on the education of a growing number of medical professionals.In Kenya, the pharmaceutical industry is also involved in the production of surgical gauze, capsules, and disposable syringes.

Kenya’s government is the largest purchaser of locally produced and imported drugs.

KENYA PHARMACEUTICAL MARKETRECENT PARTNERSHIPS

KENYA PHARMACEUTICAL MARKET TRENDS

AI and ML Enhance Pharmaceutical Operations:The adoption of artificial intelligence (AI) and machine learning (ML) gained momentum in the Kenyan pharmaceutical sector, enabling improvements in efficiency, optimization of manufacturing processes, and enhanced supply chain management.

Government Initiatives Foster Pharmaceutical Sector Growth:The Kenyan government continued to implement supportive policies to promote pharmaceutical industry growth, including the National Health Insurance Act, the Pharmaceutical Development Fund, and the establishment of the Kenya Pharmaceutical Manufacturers Association (KPMA).

E-Pharmacy Gains Popularity in Kenya:The adoption of telemedicine and e-pharmacy platforms expanded in Kenya, driven by increased smartphone and mobile internet penetration, providing patients with convenient and affordable access to medicines and healthcare services.

Kenyan Government Approves Establishment of Pharmaceutical Development Fund:The Kenyan government approved the establishment of a Pharmaceutical Development Fund to provide loans and support to local pharmaceutical manufacturers, with the aim of reducing reliance on imported medicines and promoting local production.

WHO Collaborates with Kenya to Strengthen Regulatory Systems:The World Health Organization (WHO) partnered with the Pharmacy and Poisons Board (PPB) of Kenya to enhance regulatory frameworks and improve the quality, safety, and availability of medicines for Kenyan citizens.

Kenya Airways Receives CEIV Pharma Certification:Kenya Airways obtained the Centre of Excellence for Independent Validators (CEIV) certification from IATA, demonstrating its ability to handle temperature-controlled pharmaceutical shipments, positioning Kenya as a strategic hub for pharmaceutical logistics.

Generic Medicines Continue to Drive Growth:Generic medicines continued to dominate the Kenyan pharmaceutical market, accounting for over 78% of prescription drug sales, reflecting the growing demand for affordable healthcare solutions.

KENYA PHARMACEUTICAL MARKETCOMPANY PROFILE

• GlaxoSmithKline (GSK)
• Novartis
• Roche
• Pfizer
• Bayer
• Sanofi
• Merck & Co.
• AstraZeneca
• Johnson & Johnson
• Eli Lilly and Company

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

1. What are the key regulatory bodies and agencies responsible for overseeing the pharmaceutical market in Kenya?
2. How has the local pharmaceutical manufacturing industry evolved in Kenya, and what impact has it had on the market?
3. How does the government regulate drug pricing to ensure affordability and accessibility for the population?
4. What are the opportunities and challenges in the herbal and traditional medicine segment of the pharmaceutical market?
5. How has the pharmaceutical market in Kenya responded to the COVID-19 pandemic in terms of drug availability and vaccination efforts?
6. Where is the Kenya Pharmaceutical Market  manufactured? What is the average margin per equipment?
7. Market share of Kenya Pharmaceutical Market manufacturers and their upcoming products
8. How does the government promote pharmacovigilance and reporting of adverse drug reactions in the pharmaceutical market?
9. Details on network of major Kenya Pharmaceutical Market and pricing plans
10. What initiatives are in place to enhance the role of telemedicine and e-pharmacies in the healthcare system?
11. What specific disease management programs or initiatives are driving pharmaceutical demand in Kenya, and how are they funded?
12. What initiatives are in place to enhance the role of telemedicine and e-pharmacies in the healthcare system?
13. What specific disease management programs or initiatives are driving pharmaceutical demand in Kenya, and how are they funded?
14. What efforts are being made to encourage research and development in the pharmaceutical industry in Kenya?