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The Nairobian

Pharmacists call for measures to improve growth

Business

By Standard Reporter | Nov 29, 2015

The pharmaceutical industry has urged the National Treasury to pursue a more aggressive strategy to ensure the recent economic downturn does not recur in the New Year.

According to the Pharmaceutical Society of Kenya (PSK), the economic situation witnessed in the last three months had the potential of ruining crucial sectors through massive job losses.

The society says in recent weeks, investors in the pharmaceutical industry have had to contend with revenue losses of between 30 per cent and 40 per cent, a situation it terms dangerous to the health sector.

“Like other sectors, the slowing of the economy in last few months has affected business in the pharmaceutical industry. Most business have recorded declining profits,” PSK President Paul Mwaniki told an annual society dinner at a Nairobi hotel at the weekend.

Dr Mwaniki added: “We support recent efforts by the government to fight corruption and fight the economic downturn. This will avert job losses. However, we believe more needs to be done to ensure the situation does not recur.”

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At the same time, Mwaniki urged the Treasury to raise funding to the sector in the coming financial year. He said an increase from 6 per cent to at least 15 per cent in allocations will allow counties get enough resources to fund devolved health functions.

While there has been outrage over calls by Parliament’s Committee on Implementation that county governments cede all their health functions to the national government, the medic said problems in the sector are about limited funding.

Mwaniki said the current 6 per cent budget allocation to the sector is way below the 15 per cent agreed upon by African governments under the 2001 Abuja Declaration.

“We urge President Uhuru Kenyatta to ensure a tremendous increase in allocations to health programmes in the next financial year,” Mwaniki said.

He added that county government should also harness local resources to ensure hospitals are well equipped with equipment and human resources.