ESTABLISHING A GOVERNMENT FUNDED PHARMACEUTICAL INDUSTRY IN KENYA: REDUCING MEDICINE COSTS, ENHANCING HEALTH SECURITY AND CREATING JOBS
ESTABLISHING A GOVERNMENT FUNDED PHARMACEUTICAL INDUSTRY IN KENYA: REDUCING MEDICINE COSTS, ENHANCING HEALTH SECURITY AND CREATING JOBS
Caroline Akoth Okuku - Department of Accounting and Finance, Maseno University, Kenya
Dr. Benjamin Ombok - Department of Accounting and Finance, Maseno University, Kenya
ABSTRACT
Access to affordable, high-quality medicines remains a critical issue in Kenya’s public health system. Despite a growing pharmaceutical market valued at over USD 1 billion, about 70% of medicines are imported, increasing drug prices and supply vulnerabilities. This seminar paper explores the feasibility and rationale for establishing a government-funded pharmaceutical industry in Kenya. The paper is prompted by persistent challenges in the healthcare sector, including stockpiles of expired drugs at KEMSA, fraudulent claims under the Social Health Insurance Fund (SHIF), and the suspension of donor aid by the U.S. government. The proposed industry aims to localize drug production, reduce medicine costs, improve availability, and create employment opportunities. The paper adopts a policy review and desk research approach, drawing from official reports, national strategies, and academic studies. The discussion outlines the current challenges, policy gaps, implementation strategies, and the projected socioeconomic benefits of this initiative. The findings suggest that a state-owned pharmaceutical entity, supported by public-private partnerships and strong regulatory frameworks, can significantly boost health system resilience, reduce foreign dependency, and position Kenya as a pharmaceutical leader in the region. The paper concludes with policy recommendations including investment in R&D, enforcement of local procurement policies, and institutional reforms to mitigate corruption. These interventions are essential for building a sustainable and secure pharmaceutical supply chain in Kenya.
