Kenya pushes to cut medicine imports as East Africa backs local production drive

A high-level East African engagement Forum by Pharmacetical Society of Kenya, where the main guest was Parliamentary Finance Comment chairman Kimani Kuria. [Jenipher Wachie, Standard]

Kenya is confronting a stark imbalance in its health system, where demand for essential medicines continues to outpace local supply.

About 70 per cent of medicines consumed in the country are imported, while only around 20 per cent of products on the essential medicines list are manufactured locally.

Across Africa, the picture is even more uneven. The continent carries roughly 25 per cent of the global disease burden but produces only about 3 per cent of medicines and a negligible share of vaccines.

This growing gap in access, affordability and supply chain security has placed renewed urgency on efforts to scale up pharmaceutical manufacturing.

Policymakers, regulators, manufacturers and financiers convened in Nairobi for a high-level East African forum focused on financing and investor readiness for local production of 24 priority medical products.

Speaking at the forum, Dr Joel Gondi, Director of Primary Healthcare at the Ministry of Health, who represented Principal Secretary Mary Muthoni, underscored the central role of medicines in healthcare delivery.

“We do not have health without products and technologies. When patients visit facilities and do not find medicines, they say they did not receive services,” he said.

He noted that Kenya has long been viewed as a regional leader in pharmaceutical manufacturing but has struggled to scale.

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“The question we must ask ourselves is why we are not moving into scale, despite having the capacity and the market,” he said, urging manufacturers and regulators to align efforts and sustain engagement with government.

In a statement delivered on behalf of the Principal Secretary, the Ministry of Health framed local manufacturing as both a public health and economic priority.

“The question is no longer whether Africa should manufacture its own medicines. The question is how quickly, how efficiently and how sustainably we can do so,” the statement read.

At the centre of the discussions is a continental push led by the African Union Development Agency (AUDA-NEPAD) to scale production of 24 essential medical products.

These include treatments for HIV and AIDS, malaria and tuberculosis, as well as vaccines, diagnostics and maternal and child health commodities. The products are considered critical to achieving universal health coverage and strengthening health security.

Dr Wairimu Mbogo, President of the Pharmaceutical Society of Kenya, said the forum was convened to move beyond discussion to implementation. “It was important now to bring manufacturers into the room and focus on readiness, investment opportunities and closing existing gaps,” she said.

Data presented showed that Kenya’s pharmaceutical sector is operating below potential. Local manufacturers are running at less than 50 per cent of installed capacity, with production largely limited to basic formulations such as tablets. More complex products like vaccines, biologics and injectables remain largely absent.

At the same time, Africa faces a financing shortfall estimated at 66 billion dollars to support health manufacturing. This gap is compounded by structural mismatches between financiers and manufacturers, including high lending thresholds, short repayment periods and limited access to affordable capital.

Dr Eric Nzeyimana, Principal Health Officer at the East African Community Secretariat, said the cost of medicines continues to place a heavy burden on households. “Out-of-pocket payments account for more than 40 per cent of private health expenditure in our region. For many families, buying medicine competes with basic needs like food and shelter,” he said.

He added that strengthening local manufacturing could ease this burden by reducing costs and improving access. “This is not just an economic issue. It is a moral imperative to ensure our communities can access the medicines they need,” he said.

From a continental perspective, AUDA-NEPAD’s Director of Human Capital and Social Development, Symerre Grey-Johnson, said the focus has shifted from planning to scaling production.

“We are no longer asking whether Africa should manufacture its own health products. We are now asking how we scale and sustain that manufacturing,” he said.

He revealed that the East African forum is the first in a series of regional engagements, with similar dialogues planned for Southern, West and North Africa to align investment and policy frameworks across the continent.

Dr Janet Byaruhanga, who leads the 24 priority products initiative at AUDA-NEPAD, explained that the selection of the products is rooted in Africa’s disease burden and daily healthcare needs. “These are not just commodities. They are interventions that our populations depend on every day,” she said.

She added that regional manufacturing offers the most viable path to securing supply. “If we build a strong local industry, we reduce dependency, respond faster to health emergencies and ensure that our people have access to quality, affordable medicines,” she said.

Despite the opportunities, stakeholders highlighted persistent barriers slowing progress. These include high energy costs, expensive land for manufacturing facilities, lengthy regulatory approval processes and heavy reliance on imported raw materials. Africa currently imports more than 95 per cent of active pharmaceutical ingredients used in production.

Manufacturers also pointed to market challenges, including delayed government payments and competition from imported products, which dominate public procurement. Industry players called for stronger policy support, including tax incentives, demand guarantees and preferential procurement for locally produced medicines.

Kimani Kuria, Chairperson of the National Assembly Committee on Finance and National Planning, said legislative measures are being considered to support the sector. “We are proposing that at least 30 per cent of medicines procured by government should come from local manufacturers. This is how we build Kenya and create jobs,” he said.

He emphasised that pharmaceutical manufacturing should be treated as a strategic investment rather than a cost. “Every imported product is a job exported. We cannot continue to be a supermarket economy if we want to grow,” he said.

Participants also stressed the need for regulatory harmonisation across the region to ease market entry and reduce duplication. Efforts are underway through the East African Community to streamline approvals and create a more predictable investment environment.

The forum concluded with a call to translate commitments into action, with stakeholders agreeing on the need to align policy, financing and market systems. With Africa’s pharmaceutical market projected to grow from about 60 billion dollars in 2024 to 120 billion dollars by 2032, the stakes are high.