As Kenya convenes global innovators, investors and partners at this week’s Africa Forward Summit, one issue should frame the conversation: how Africa builds health manufacturing capacity.
Africa carries roughly 25 percent of the global disease burden, yet accounts for only about 3 percent of global pharmaceutical production.
African countries still import most of the health products they rely on, including up to 95 percent of diagnostics and 99 percent of vaccines. This is a significant gap that represents both a vulnerability and an opportunity. This dependence is not just a supply chain issue, but an economic and governance choice we can change.
Fortunately, Kenya has made a start. At the very heart of this shift is the government’s imminent strategy on local manufacturing of health products and technologies. It is our first, and it links health sovereignty, industrial growth, and investment opportunity.
If Kenya gets it right, we will not only produce medicines, vaccines, medical devices, and diagnostics, but also create jobs, build skills, and strengthen economic resilience.
There is, however, a danger of getting stuck in a cycle of ambition and rhetoric that leads to either no new capability or to policy frameworks that miss the ‘hard edge.’
Other sectors like mobile money, fintech and broader digital infrastructure have shown what is possible when policy, innovation and investment are aligned.
Kenya is well-positioned to serve as a manufacturing hub for East Africa. It is currently the largest producer of pharmaceuticals in the Comesa region, with more than 40 local manufacturing companies supplying an estimated 50 percent of the regional market. Kenya’s pharmaceutical market is valued at over $1 billion and continues to grow.
The nation stands to lose this advantage if we fail to confront an important truth: our local factories will not thrive without the right incentives, reliable markets, and credible regulation.
Today, Kenya’s pharmaceutical sector faces several key constraints. Production costs remain high, demand is unpredictable and fragmented across public and private sectors, and imported medicines continue to dominate the market.
This includes those that can easily be manufactured locally. Therefore, the strategy must address three underlying, interconnected structural issues.
First, market demand must be driven by government policy and procurement decisions.
Second, Kenya must anchor its strategy in regional integration, coordination and harmonisation and third, Kenya should be pragmatic about where to compete.
As Kenya steps onto the global stage at the Africa Forward Summit, it has an opportunity to do more than signal intent. If done right, its local manufacturing strategy can position her as a credible destination for investment in health manufacturing.
Rather than attempting to replicate the entire pharmaceutical value chain, there is a strong case for focusing on specific categories of diagnostics where production barriers are lower and demand is growing, such as rapid diagnostic test kits. This offers a practical entry point for local manufacturers, enabling faster scale-up, job creation, and more rapid gains in health security.
Kenya can differentiate itself by streamlining regulatory pathways, providing predictable procurement commitments, and offering targeted incentives for manufacturers. These are the signals that turn ambition into investment decisions. Progress depends on aligning policy, regulation, financing, and market demand.