Kenya local manufacturing

ISI policy in this period successfully created an industrial base in Kenya, especially in light consumer industries such as textile and foodstuffs, but also in others such as metal products. Between independence and 1980, industrial output quadrupled, the share of GDP in manufacturing grew from 10.1% to 13.3% and the number of industrial establishments more than doubled (Ogonda, 1992 297-98). The increase in local manufacturing reduced the multinational companies (MNCs) share of industrial output, which however still accounted for 20% of industrial output in the early 1970s (Maxon, 1992 385). 

Kenya has also seen strong growth in its pharmaceutical exports in the new millennium, especially since 2002. Exports started growing around 1992-93 thanks to the buy local push, which promoted the expansion of local manufacturing. However, during the 1990s and early 2000s,... 

Our supply chain data (Table 8.1) show that the public sector wholesaler in each country had bought a higher proportion of the tracer essential medicines from local manufacturers than had the private wholesalers. The faith-based wholesaler in Kenya (MEDS) was the most likely of all to source these medicines locally. All Kenyan wholesale sectors, furthermore, were more likely than their Tanzanian counterparts to buy these essential medicines from their local manufacturers (Table 8.1). Finally, while Tanzania buyers sourced medicines from Kenya ( other African for Tanzania in Table 8.1 is largely Kenyan), the Kenyan buyers bought little from non-Kenyan African suppliers. 

By the way the locally manufactured drugs are cheap and the people who go for them are the health facilities in upcountry.mission hospitals, clinics, district hospitals and local pharmacists in upcountry, they really support local manufacturers. (Private hospital, Kenya)... 

By the Value Added Tax (Amendment) Act, No. 7 of 2014, Kenya. Inputs or raw materials (either procured locally or imported) supplied to pharmaceutical manufacturers in Kenya for manufacturing of medicaments, as approved from time to time by the Cabinet Secretary for National Treasury in consultation with the Cabinet Secretary responsible for health, were added to list of exempts. 

In February 2014, Kenya had 39 pharmaceutical manufacturers registered with the Pharmacy and Poisons Board (PPB). Thirty-four were producing pharmaceuticals for human health, while the rest concentrated on veterinary products (Wamae and Kariuki Kungu, 2014). There were also 20 multinational firms with local representation for marketing purposes and /or involved in clinical trials. 

Tanzania, which investigated supply chains from local producers and importers into the health sector. Qualitative interviews and quantitative data collection on availability, somce and price of a checklist of tracer medicines and other essential supplies were conducted in hoth countries. In Tanzania, 42 health facilities (public, faith-based and private), pharmacies and drug shops across four very diverse districts were visited (Tibandebage et al., 2014), while in Kenya, 55 health facilities, pharmacies and shops were interviewed in a comparative study (Kariuki et al., 2015). Following these supply chain studies, wholesalers, manufacturers and poUcy and regulatory stakeholders were interviewed in both countries in 2013-14. This chapter draws also on some of these interviews, alongside secondary data somces. 

An important difference between the two countries is in the scale of the local pharmaceutical industry and the range of products the firms have the capability to supply (Chapters 2 and 3). While Tanzania had just five operating firms when the 2013 research was done, Kenya had about 40 producers, including firms capable of supplying parenterals manufactured in sterile conditions. The density in itself meant that Kenyan firms were more able than Tanzanian firms to supply their local market. However, they still currently (2013) supply only around 25% of the domestic demand (Chapter 2). There is clearly room for expansion of local supply in both countries. 

The sharp process of institutional change in the health systems and medicines financing in Kenya and Tanzania has faced the largely locally owned manufacturers of medicines currently working in the two countries with... 

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