Pharmaceutical industry remains a key national development component

The pharmaceutical industry plays a major role in supporting Kenya’s health sector. Nairobi hosts the largest contingent of Multinational Pharmaceutical Companies (MNCs) in the region. Major European and American pharmaceutical companies are present through locally incorporated affiliates, technical representative offices and local technical agents.

Kenya is currently the largest producer of pharmaceutical products in the Common Market for Eastern and Southern Africa (COMESA) region, supplying about 50 per cent of the regions’ market (Wilson, 2012). Out of the region’s estimated 50 recognised pharmaceutical manufacturers, 32 are based in Kenya.

What it’s worth

The Kenyan market for pharmaceuticals reached $558.5 million in 2014 with the total turnover for the local production standing it at $103 million. The value addition from the pharmaceutical sector generates around $62 million and amounts to 30 per cent of the Gross Domestic Product (GDP)

The Kenya Association of Pharmaceutical Industries (KAPI) was established in the 1960’s by a group of R&D based pharmaceutical companies to promote high standards in the pharmaceutical industry. The Association draws its membership from large MNCs with local affiliates.

KAPI’s mission is to promote an ethical, innovative and responsible health care industry. Of concern now is how the pharmaceutical sector can play its role efficiently and effectively.

To expand the local production of pharmaceutical products, the sector requires access to more markets and a sustained supply of a qualified human resource base to support its technical capacity needs. To this end, institutions of higher learning play a critical role and their curricular needs to be continually adapted to support innovation scaling up and production.

Incentives to encourage local production and export of affordable medicine such as those enjoyed by Indian-based exporting companies should be implemented.

At the same time, government needs to protect the interests of research based MNCs which are vital in supplying innovative molecules, latest interventional products available in the developed markets and original products, bring new technologies and act as incubation hubs for latest pharmaceutical inventions eventually feeding the generic manufacturers.

This can be done by levelling the import-export requirements for all traders including parallel traders and tightening the noose on illicit trade in pharmaceutical products.

Market study

Last year, a market study, commissioned by KAPI and conducted by researchers from the University of Nairobi School of Pharmacy, confirmed an 8% prevalence of unregulated or “grey imported” medicinal brands.

The baseline study was particularly illuminating as it focused on 9 popular medicine brands and provided a representative sample for a wider market challenge. The study was undertaken among 160 practicing retailers through interviews and literature reviews with purchases for 543 products conducted in 326 retail outlets in all the major towns in Kenya.

The danger posed by unregulated or “grey” medicines, remains real as these are pharmaceutical products that have entered the market through irregular channels and have not undergone the necessary regulatory scrutiny and market conformity by the Pharmacy and Poisons Board.

Undoubtedly, such products unlike those imported through the official channels, pose grave danger to the patients using them as their efficacy and Quality remains questionable.

The association however remains optimistic that the research findings will serve as a basis for broad discussion among stakeholders, to further enhance the regulation, while raising awareness among the general public.

This year, the sector association (KAPI) will continue to play its role in development of the pharmaceutical sector in Kenya and the region with the aim of availing the highest standards of care, locally affordably and widen access to innovative research-based medical interventions.