Microsoft is working with a little-known Nakuru-based health-technology startup whose artificial intelligence-powered platform is being built on the US tech giant’s enterprise tools to improve efficiency and profitability at independent pharmacies across Kenya.
The collaboration reflects Microsoft’s push to embed its AI products in business applications in emerging markets, particularly in healthcare supply chains dominated by small, owner-run outlets.
The platform is built by Zendawa, a three-year-old venture, on Microsoft’s AI assistant Copilot, its data visualisation tool Power BI and the cloud computing platform Microsoft Azure.
It enables pharmacies to digitise inventory management, track stock in real time and forecast demand, reducing losses linked to expired medicines and poor stock planning.
In Kenya, a significant share of outpatient care begins at community pharmacies or clinics with pharmacies. Yet many independent outlets are small, owner-run businesses that operate on thin margins and still rely on pen-and-paper systems. This exposes them to frequent stock-outs, over-ordering and drug wastage.
Zendawa’s software programme aggregates sales and prescription data to guide ordering decisions, reducing the need to stock multiple versions of the same medicine while improving visibility into fast-moving products.
The software also generates data-based credit profiles that pharmacies can use to access financing from partner lenders without providing traditional collateral.
Wilfred Chege, an IT specialist, co-founded Zendawa with pharmacist Dr Victor Achoka in 2019, before setting up the business in 2023.
Mr Chege says pharmacies using the platform report reductions in expired stock of about two-thirds, as well as longer operating hours after automated stock-taking reduced the need for frequent shop closures.
Zendawa’s software has three modules that can be activated independently. Pharmacies typically begin by digitising their point-of-sale systems, especially those moving from manual record-keeping.
“After up to three months of transactions, data has been generated, and the platform can unlock an embedded financing module. Sales data is used to assess stock-keeping units (SKUs), turnover and cash flow, which then inform a pharmacy’s credit profile,” the 26-year-old told the Business Daily in an interview.
The startup also runs a web-, mobile- and SMS-based marketplace that allows consumers to place medicine orders for delivery or in-store collection, similar to large online pharmacy platforms like Kenya’s MyDawa. Access to this module is subject to pharmacies meeting minimum operational thresholds.
Zendawa has partnered with licensed credit providers to extend loans.
“Our data is the guarantee that a pharmacy has a certain turnover or cash flow and can be given credit,” Mr Chege said.
“The liability does not lie with us, but with the pharmacy and the lender. We are just an introducer.”
AI-powered forecasting is another core part of the platform. Using Power BI, Zendawa analyses historical sales and prescription trends to predict consumption patterns for specific medicines over defined periods. Information on stock-outs, slow-moving items and approaching expiries is then made available through a Copilot-powered chatbot, which allows pharmacists to query their data in real-time.
Zendawa was part of the inaugural Microsoft GenAI Accelerator last year, a programme run in partnership with another US tech giant, NVIDIA, to support African startups building and scaling generative AI products. Through the collaboration, Zendawa works with Microsoft engineers and Silicon Valley-based consultants and receives cloud credits to ensure the platform integrates seamlessly with Microsoft’s enterprise tools.
Zendawa has expanded since 2023 to support 820 pharmacies, mainly in Nairobi and Nakuru. There is a rising interest from big tech firms in using AI to strengthen healthcare supply chains and support small businesses in Africa’s urban markets.
Mr Chege said the partnership with Microsoft does not involve direct capital investment; the startup is fundraising separately as it looks to expand its footprint beyond its Nakuru base.
“So far, we are leveraging each other for acceleration and adoption,” Mr Chege said. “[Microsoft] are looking for wider adoption of their enterprise products, and we get faster scale in the market.”
