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Value of pharma imports down 22pc on shift to cheaper products
About 70 percent of medicines consumed domestically are still imported, with local manufacturers supplying only around 30 percent of national pharmaceutical demand.
Kenya cut its spending on pharmaceutical imports by 22 percent during the first nine months of 2025, as the country shifted toward lower-cost procurement strategies.
Between January and September 2025, the country spent Sh62.1 billion on medicinal and pharmaceutical products, down from Sh79.6 billion over the same period in 2024—a reduction of Sh17.5 billion, according to the Kenya National Bureau of Statistics (KNBS).
Medicinal and pharmaceutical products refer to finished dosage forms of medications and related healthcare products that are ready for distribution.
They include prescription drugs that require a doctor’s authorisation, over-the-counter medicines such as painkillers and cough syrups, vaccines, and both generic and branded medicines, medical supplies like syringes and diagnostic test kits.
The drop in spending came even as the volume of pharmaceutical imports rose slightly by 1.2 percent, from 29,324.5 tonnes to 29,664.7 tonnes.
This means Kenya is paying about 23 percent less per tonne of medicines than it did a year earlier, pointing to a shift to cheaper types of medicines being imported.
The trend was most evident in the third quarter of 2025, when Kenya spent just Sh19.6 billion on pharmaceutical imports, the lowest quarterly figure on record and a 32.1 percent decline from the Sh28.9 billion spent in the third quarter of 2024.
Over the same period, import volumes jumped to 12,239.7 tonnes, the highest quarterly level and 21.6 percent more than in the corresponding quarter a year earlier.
The lower import bill could be linked to a shift toward generic medicines rather than more expensive branded drugs, as well as improved pricing through bulk-purchase agreements with international suppliers. Government efforts to contain healthcare costs through initiatives such as the Universal Health Coverage (UHC) may also be shaping procurement decisions.
The pattern observed during the first nine months of 2025 was projected in late 2024. In the fourth quarter of 2024, pharmaceutical imports fell sharply to Sh20.3 billion —a 29.8 percent drop from the third-quarter peak, marking a turning point that was carried into 2025 and established a trend of reduced spending.
Despite its heavy reliance on imports, Kenya has established itself as the third-largest pharmaceutical exporter in Africa and the leading exporter within the Common Market for Eastern and Southern Africa (Comesa) region. Exports of medicinal and pharmaceutical products reached Sh19.2 billion in 2024 and stood at Sh12.9 billion in the nine months to September 2025.
Kenya’s main export destinations include Uganda, Ethiopia, Malawi and Rwanda.
However, about 70 percent of medicines consumed domestically are still imported, with local manufacturers supplying only around 30 percent of national pharmaceutical demand.
“With over 30 pharmaceutical manufacturing plants, Kenya’s pharmaceutical industry is the largest in the Common Market for the Eastern and Southern Africa region. However, insufficient drugs are manufactured in Kenya to meet domestic needs. As a result, approximately 70 percent of locally used drugs are imported,” the 2024 Kenya Pharmaceutical Industry diagnostic report says.
The government has set a target to increase local production by at least 60 percent by 2026.
“Our priority is to advance technology transfer, industrial collaboration, and sustainable systems strengthening, fully aligned with the President’s role as African Union Champion for Local Manufacturing —to reduce dependency and enhance Africa’s capacity to produce essential health commodities,” Health Cabinet Secretary Aden Duale said during an official visit in India last month.
