Empowering Kenya’s Healthcare Sovereignty: USAID’s Private Sector Engagement Program Strides Forward

In a significant stride towards enhancing local manufacturing for the production of quality and affordable essential health products and technologies in Kenya, the USAID Private Sector Engagement (PSE) Program recently organised a co-creation workshop in collaboration with the Directorate of Health Products and Technologies (DHPT). The workshop, held from the 21^st to the 23^rd of November 2023, aimed to boost local manufacturing of health products and technologies by identifying and addressing existing gaps, designing targeted interventions, establishing shared priorities, and mapping out potential partners who can contribute to the initiative.

The overarching objective of the workshop was to boost Kenya towards self-reliance in the supply of crucial health products and technologies. By fostering collaboration between the public and private sectors, the USAID PSE Program seeks to catalyse local manufacturing capabilities, ensuring a sustainable and resilient health system for the nation. There is an urgent need for collaborative efforts and strategic partnerships, especially due to the President’s recent declaration at the Local Manufacturers Exhibition of the need for Kenya to be able to locally produce 50% of the essential medicines on the Kenya Essential Medicines List (KEML) by 2026. This declaration sets the pace for the nation’s bold vision of attaining healthcare independence. “Kenya prides itself on having 40 manufacturers of health products and technologies and possibly catering to close to 60% of the factories in the COMESA region. And yet 70% of the medicine we use in the country is imported, with just about less than 30% being produced locally,” stated Dr. Tom Menge, Head Directorate of Health Products and Technologies, while emphasising the mismatch between market demand and supply in relation to the global market. In a bid to address the reasons why Kenya, like many other nations, is struggling to meet the demands of their healthcare markets internally, the co-creation session brought the following grievances to light:

1. The high import costs, driven by factors such as transportation, tariffs, and fluctuating exchange rates, have contributed to a situation where local products struggle to compete.
2. Imported pharmaceuticals are often perceived as having higher quality compared to their locally manufactured counterparts.
3. Local manufacturers often grapple with inadequate technology and infrastructure, affecting their capacity to produce cost-effective and high-quality drugs that can compete with imports.
4. Stringent regulatory requirements pose obstacles for local manufacturers seeking to bring their products to market.

Dr. Tom Menge went further to compare Bangladesh, one of the most successful and least developed countries in the pharmaceutical industry, to Kenya. The industry’s success can be attributed to a combination of factors, including proactive government policies, investment in research and development, a robust regulatory framework, and a focus on building a skilled workforce. Bangladesh’s pharmaceutical sector has not only met domestic demand but has also become a major exporter of pharmaceuticals to international markets. The mismatch between market demand and supply in Kenya’s pharmaceutical sector is a challenge that requires collaborative efforts from the government, private sector, regulatory bodies, and local manufacturers. By addressing the issues of high import costs, quality disparities, and the challenges faced by local manufacturers, Kenya can move towards a more sustainable and competitive pharmaceutical industry, ultimately reducing its dependence on imported pharmaceuticals. At the core of the USAID Private Sector Engagement Program is a commitment to improving health outcomes for Kenyans by expanding patient choices for health products and services within the private sector. The program envisions transforming the Kenyan health market through country-led and country-owned partnerships, actively involving both the private sector and manufacturers in the process. As the program progresses, it is expected to unlock new opportunities for local manufacturers, foster innovation, and ultimately contribute to the improved well-being of the Kenyan population.