The health sector has experienced remarkable development in recent years with the country spending about 8% of the GDP on health. The rapid growth of the pharmaceutical market in the region has presented the need to increase quantity of production, and also increase the export ratio for quality products. More prospective opportunities lie in the expansion of product portfolio, search for new markets, and support for medical research.
Opportunities for investment in the health/pharmaceutical sector include the following:
• Manufacture of medical equipment and supplies such as syringes, catheters and gauzes for the regional market.
• Commercial processing of traditional medicines: Diverse flora exists in the country.
• 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
• 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.
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 country’s pharmaceutical and consumer health market is estimated to be worth an estimated $160m each year.
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
