Value of medicine imports dips 24pc as Kenya ramps up local production

The decline in the import bill came despite import volumes rising by 13.1 percent to 8,632.2 tonnes from 7,632.1 tonnes a year earlier.

This fall could be attributed to several factors, including declining global input costs for pharmaceutical raw materials and Kenyan importers shifting towards lower-cost generic suppliers.

It could also be due to the growing number of local manufacturers producing basic medicines that were previously imported, reducing reliance on more expensive finished imports in certain categories.

However, industry experts say that more than 85 percent of essential medicines used in Kenya are still imported, with local firms largely confined to basic, low-margin products, while complex medicines continue to be sourced from abroad.

These figures emerge as the government intensifies its efforts to reduce Kenya’s reliance on imported medicines. Under a directive first issued in 2023, the State has set a target of making half of the medicines on the Kenya Essential Medicines List locally by the end of this year.

Health CS Aden Duale, said expanding local production was central to what he termed Kenya’s ‘health sovereignty’, citing a 22 percent decline in pharmaceutical import expenditure between 2024 and 2025.

“Health security cannot be outsourced. Countries that do not produce essential health products remain exposed to external shocks,” he said.

When launching the Ministry of Health’s Local Manufacturing Strategy 2026–2030 last month, Principal Secretary for Medical Services Ouma Oluga said local manufacturing was the single largest lever the country has left to pull on cost, adding that a health system cannot be sustained if it cannot be reliably supplied.

“The strategy seeks to address barriers that have limited the growth of local manufacturing while creating an environment that encourages investment, innovation, and industrial expansion,” said Dr Oluga.

To support the industry, the government removed value-added-tax (VAT) on raw materials and inputs used to manufacture pharmaceutical products, whether sourced locally or imported, except for the finished medicines imported ready for sale.

This measure is intended to lower production costs for local drug manufacturers.