Kenya loses Sh400 billion for not investing in pharmaceutical industry

Kenya is losing up to Sh400 billion annually for not tapping into the region's vibrant pharmaceutical industry.

Despite having the potential to supply pharmaceutical products to neighbouring countries, Kenya as well as other East African nations are said to import up to 70 per cent of their medicines.

Across the region, Kenya has the largest number of manufacturers (34) with the rest 14 being shared among the remaining East African countries.

In the 2016 Africa Pharmaceutical Summit held in Nairobi on Wednesday, it was noted that poor standards, lack of specifications, skill gaps and inadequate government support was dragging the industry.

Intellectual rights by manufacturers and slow policy adoption were also cited as hindrances.

"We have the largest number of manufacturing firms in the region with the potential to supply 80 per cent to region including the Common Market of East and Southern Africa (COMESA)," said Industry and Enterprise Development Principal Secretary Julius Korir.

According to Data, Sub-Saharan Africa-mostly made up of Comesa countries- spend up to Sh590 billion (USD 5.9 billion) in medical goods and services.

Korir said quality, ethics and safety in local production of medicine seem to be the major challenges. To overcome this, he called on local industries to partner with international manufacturers so as to boost their ranking in terms of standards.

"Do not allow quality to be the reason for you to be blocked out. Leverage on the trade platforms organised to create partnerships as the government pushes for streamlined policies. In at least two years we should be 90 per cent compliant," said Korir.

Director Federation of East African Pharmaceutical Manufacturers Nazeem Mohammed insisted on polices that will first protect local industries: "We need a leveled playing field as competition is very unfair. Some of the countries exporting their products to Kenya get subsidies but we do not."

This was echoed by his Kenyan counterpart Palu Dhanani: "These are infant industries that need protection like tax incentives, affordable technologies at least until they grow to compete internationally."

PS Korir noted the conflict of interest between the trade and health ministry in pushing for favourable policies for local industries.

"To get affordable products health ministry will push for importation which is cheap but this in turn kills our local industries. However, we have streamlined our policies which will safeguard our local industries," he said.