Region
Kenya

Sector
Healthcare & Pharmaceuticals
Manufacturing

Summary:

The Kenyan pharmaceutical market is booming as a result of a growing population that is increasingly able to pay for better health services and pharmaceutical products.

Contact
Margaret Waithaka

Email
mwaithaka@epzkenya.com

Investment and business opportunities in the pharmaceutical sector

• Multipurpose chemical plant for bulk production of intermediate inputs such as paracetamol and aspirin
• Processing of locally available sugar, salt (sodium chloride) and ethanol to pharmaceutical grade for pharmaceutical industry use
• Commercial processing of traditional medicines: diverse flora exists in the country.
• Establishment of a chemical plant to manufacture anti-tuberculosis, anti-leprosy, antibiotic rifampicin from the penultimate state.
• Manufacture of Quinine by extraction from Cinchona bark and subsequent purification and synthesis to Quinine Sulphate
• Extraction of Hecogenin from sisal waste and synthesis of betamethasone from hecogenin
• Manufacture of disposable surgical gloves, latex gloves and condoms.
• Manufacture of medical equipment and supplies such as syringes, catheters and gauzes for the regional market.

Sector overview

Kenya is currently the largest producer of pharmaceutical products in the Common Market for Eastern and Southern Africa (COMESA) region, supplying about 50% of the region’s market. The pharmaceutical and consumer health market is estimated to be worth an estimated $160-million per annum. Out of the region's estimated 50 recognised pharmaceutical manufacturers, 30 are based in Kenya. The industry has a strong multinational heritage, with many foreign firms maintaining significant operations. A wide range of products are manufactured for both local and international markets. Kenya is the second country in the continent after South Africa to produce generic antiretroviral drugs, heightening the development of local production. The country however relies heavily on imported raw materials, with local availability limited to 5% of the total industrial requirements. To increase supply, the government has embarked on specific growth measures including:

• Drug development from natural sources for the local industry
• Continued research by institutions like the Kenya Medical Research Institute (KEMRI) and the University of Nairobi on extracts from medicinal and aromatic plants
• Supplementing mainstream research with herbal medicine by involving local traditional health practitioners and biomedical researchers in research processes.

Exports

The country enjoys preferential access to the regional market under a number of special access and duty reduction programmes related to the East African Community (EAC) and COMESA. Export market for medicinal and pharmaceutical products includes Tanzania, Uganda, DRC, Rwanda, Burundi, the Comoros, Ethiopia and Malawi.

To make the sector attractive for investments, the government has put in place investor friendly arrangements such as the Export processing Zones (EPZ) program which offers attractive incentives to export-oriented investors, and generous investment and capital allowances.

For more information about this and other investment opportunities in Kenya contact the Export processing Zones Authority.

Key contact: Margaret Waithaka
Manager: New Investments
mwaithaka@epzkenya.com