There are 42 companies listed as local pharmaceutical manufacturers in Kenya. Amongst these, there is only one multinational, GlaxoSmithKline (GSK). Together, these companies constitute an important pharma manufacturing centre in the region. Local players tend to focus on generics, and have similar portfolios and utilization rates. Local pharma companies are characterized by:

1)      Local ownership is defined as a company registered and domiciled in Kenya (does not necessarily need direct, local ownership)

2)      Most local firms are 100% locally owned, family business (some are now open to foreign investment)

3)      45 companies listed as local pharma manufacturers, approximately 20 as distributors, and 33 in the diagnostics sector (note, these companies registered on government websites, but there are others operating within the space)

4)      Manufacturers mostly produce generics or drugs licensed by larger, international pharmaceutical companies

5)      Produce same categories of drugs; some have agreements with multinational drug companies to produce ARVs

6)      Low capacity utilization for some manufacturers: 45% - 66% leading to high production costs per unit

7)      Varied GMP standards among local firms

8)      Shortage of qualified personnel (one pharmacist for every 8,710 people, and locally trained pharmacists lack basic industry orientation)

9)      Need for greater production efficiencies

10)   Import large percentage of raw materials, principally, APIs and excipients

11)   In the diagnostics and medical supplies space, 95% of finished products are imported, and less than 5% are manufactured locally

Some Kenyan pharmaceutical companies have achieved international standards for quality production.

Besides the local major players mentioned above, there are some foreign players, such as Adcock, Cipla(nascent), GlaxoSmithKline, Merck KGaA, Metropolis Healthcare, Novartis and Pfizer.

Pharmaceutical market grows at an average of 11-14%, of which the prescription medicines account for 75% of the medicines market. Over 50% of the medicines are supplied by private commercial sector and only 28% of the medicines in Kenya market are domestic production. Hospitals, clinics, manufacturers, pharmacies and distributors, medical educators, etc. are all looking forward to financial investment. The emerging middle class in Kenya is keen to spend on health.