The pharmaceutical industry in Kenya is growing at a rapid pace and offers excellent opportunities for exporters and manufacturers to establish their products and services in the lucrative market for pharmaceuticals in East Africa. 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 regions’ market.

Kenya’s prescription pharmaceuticals market is worth over $500 million and is expected to grow at a compound annual growth rate (CAGR) of 11.8% till 2020. Prescription drugs account for around 78% of the market. However, the fastest growth in the coming years is expected in the over-the-counter (OTC) product sales.

The pharmaceutical industry in Kenya consists of three segments namely the manufacturers, distributors and retailers. All these play a major role in supporting the country’s health sector, which is estimated to have about 5,000 health facilities countrywide.

The number of companies engaged in manufacturing and distribution of pharmaceutical products in Kenya continue to expand, driven by the Government’s efforts to promote local and foreign investment in the sector. There are about 700 registered wholesale and 1,300 retail dealers in Kenya, manned by registered pharmacists and pharmaceutical technologists. These pharmacies are accorded a 25% mark-up on retail drugs. The pharmaceutical sector in Kenya is also engaged in assembling capsules, disposable syringes, paracetamol, and surgical gauze amongst others.

Kenya spends about 8% of its GDP on health. The Kenya Medical Suppliers Agency (KEMSA), a division of the Ministry of Health, largely carries out the distribution of pharmaceutical products in Kenya. It distributes drugs to government public health facilities and private health facilities.

The health sector in Kenya is one of the sectors that has experienced remarkable development in the recent years. The country has made great efforts in controlling diseases like Malaria, TB and Cholera while actively fighting the AIDS/HIV pandemic. Similar efforts have been made in controlling communicable diseases like
poliomyelitis, neonatal tetanus and measles. The targets for eradication of the guinea worm disease and elimination of lymphatic filariasis and leprosy have been attained. Other parasitic diseases of epidemiological concern such as schistosomiasis, helminthiasis and leishmaniasis are seriously being addressed.

The market is heavily dependent on the private clientele, and affordability remains a primary restraint, together with low reimbursement rates. Kenya also 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 the Common Market for Eastern and Southern Africa (COMESA) among others.

Increasingly, urban consumers constitute Kenya’s primary market segment, while private hospital pharmacies remain the principal vendors within the market’s urban sector.

SCA-Partners offers three solutions for businesses, TEM SMART (6months), TEM ADVANCED (12 months) and TEM PREMIUM (24 months) that yes differ in the duration of the support to the company and for the suite of services made available.

We would be happy to provide you with a detailed proposal. Just contact one of our team members.