The Moi Teaching and Referral Hospital is negotiating with the government and international partners on plans to start manufacturing some drugs and medical equipment locally.
CEO Wilson Aruasa said local manufacturing will help to cut costs of drugs and equipment by about half, which will improve access to healthcare for Kenyans.
He said the cost of a CT scan machine from Europe is Sh100 million but one manufactured locally would cost between Sh40 million and Sh50 million.
"Local manufacturing through partnerships with international companies will be the best way to go so that we cut costs medication in the country," he said.
Aruasa also said the state commendation awarded to him by President Uhuru Kenyatta last week will inspire him to further improve services at the hospital.
The doctor was awarded the Moran of the Order of the Burning Spear because of his contribution to the hospital, which is the second largest referral institution in the country after Kenyatta National Hospital.
"I pledge to work with other stakeholders to further improve the referral hospital so that we offer world class services," Aruasa said.
He has served at the hospital for over a decade rising from a consultant till his appointment by Uhuru in February last year for a five-year period.
He contributed to the computerisation of operations at the hospital to attain ISO Certification and is overseeing plans to relocate the facility to a new 200 acres site at Kiplombe area.
“We are on course to start the project next year and it will be the center of excellence in medical tourism, training and research in the region," he said.