The pharmaceutical industry in Kenya is growing at an interesting pace and with its growth, offers opportunities for exporters and manufacturers to establish their products and services in the lucrative market for pharmaceuticals in East Africa.
Currently, the local pharmaceutical manufacturing sector has the capacity to supply only 28%. Nearly 70% of Kenya’s pharmaceutical demand is covered by imports with regular import growth of 11.45% in the last three years on average; however the number of companies engaged in manufacturing and distribution of pharmaceutical products in Kenya continue to expand, especially with the construction of a local pharmaceutical plant at the Export Processing Zone (EPZ) in Athi River.
SQUARE Pharmaceuticals Limited, a Bangladesh-based company has announced Kshs. 7.5 billion investment that will see the pharmaceutical plant become the first WHO compliant Pharmaceutical Manufacturing Plant in Kenya and is expected to be operational by mid 2019.
It is estimated that the plant will reduce cost of drugs by 40% in the East African region and will export about 50% of its products to African markets
Spread across 16 acres, the facility will manufacture a range of 2 billion tablets/capsules and 60 million bottles of liquid of medicines for the local and export market in Africa. These will include drugs for communicable diseases such as HIV/AIDS, Malaria, and Tuberculosis and non-communicable diseases such diabetes, cardiovascular diseases and anti-psychotic disease within 5 years of initiation of manufacturing.
The construction of the plant local is not only a cost-reduction strategy aimed at promotion of technology transfer between developed & developing countries and among developing countries, bringing down the price of drugs and increasing public access to quality and affordable medicines in the country but will also create 1,500 employment opportunities for skilled and unskilled labour.
Speaking at the ground breaking ceremony, Mr. Tapan Chowdhury, Managing Director of Square Pharmaceuticals Limited said: “We recognize the opportunity and the profound responsibility to address obstacles limiting access to quality affordable drugs and promote public health in the markets we operate in, as we play our role in the pharmaceutical sector. Having a local pharmaceutical manufacturing plant will ensure Kenya and the region can easily access quality and affordable medicines.”
He added: “We are grateful for the support we have received from the Government of Kenya, particularly, creating a policy and business environment where pharmaceutical companies can thrive. We believe that, local pharmaceutical production has a potential to drastically reduce the cost of drugs by 40% and bring about greater access to essential medicines while at the same time promoting the agenda of universal health care.”
Construction of Square Pharmaceutical plant in Kenya comes after last year’s the approval of East African Regional Manufacturing Plan of Action 2017-2027 under which national procurement agencies of the East Africa Community (EAC) member states are required to buy at least half of their medicines locally.
Officiating the event, Adan Mohamed, Cabinet Secretary, Ministry of Industry, Trade and Cooperatives said that foreign direct investment, such as that of Square Pharmaceuticals will play a key role in development of the local manufacturing sector through investments in research and design and transfer of technology.
“The construction of a local pharmaceutical manufacturing plant will bring significant industrial benefits such technology transfer and demand for education and training, development of pharmaceutical production sector and create employment opportunities, as envisaged in Kenya’s Vision 2030,” said Hon. Mohamed.
Commenting on the investment, Dr. Khama Rogo, Lead Health Specialist, IFC/World Bank Group reiterated the importance of the pharmaceutical sector in ensuring Universal Health Coverage and access to quality and affordable medicines in tackling the double burden of communicable and non-communicable diseases in Kenya and Africa.
“Universal Health Coverage is a key priority area for governlments in Africa in which the pharmaceutical sector bears a close linkage. Investment in a local pharmaceutical manufacturing facility will not only make Kenya and the region ready with the latest drugs to respond to communicable and non-communicable diseases,” said Dr. Khama Rogo
Referring to the commissioning, Mr. Fanuel Kidenda, CEO, Export Processing Zone Authority said, “The investment on of a Kshs. 7.5 billion state of the art pharmaceutical manufacturing facility of the Athi River EPZ is in-line with the government’s initiative on the “Big Four” thematic areas being implemented to boost universal health coverage and the growth of the manufacturing sector thereby creating jobs and ensuring skills and technology transfer to Kenyans.”
Additional expected benefits include increased tax revenues and reduced balance-of-payments outflows.
