Last Wednesday, Deputy President Rigathi Gachagua and Second Lady Dorcas Gachagua presided over the inauguration ceremony of Questa Care’s pharmaceutical manufacturing factory in Nairobi’s Industrial Area.
From media reports, Questa Care is the manufacturing arm of Surgilinks Ltd who has been a key player in the pharmaceutical industry for about three decades in Kenya, mainly selling imported products. It was also reported that the factory, with the capacity to produce about 2.5 billion units of oral solids, 22 million bottles of oral liquids and 32 million tubes of topical preparations annually, will employ about 250 people on the onset.
This is good news for a country that has had a terrible trend of high taxation, rising cost of living and investment flight.
That the privately and locally owned pharmaceutical manufacturing factory was opened barely a month after President William Ruto directed the Kenya Medical Supplies Authority to consider using locally-made pharmaceutical products indicates that, for once, this administration seems to acknowledge the need to promote the local manufacturing industry.
But Questa Care’s inauguration raises more fundamental issues.
Kenya, like many other nations, stands at a crucial juncture in its healthcare evolution. The Covid-19 pandemic of a couple of years ago underscored the importance of a robust and resilient healthcare system. One critical aspect of this system is the pharmaceutical industry, which plays a pivotal role in ensuring the availability and accessibility of essential medicines and other health products.
In this context, it is imperative for Kenya to prioritise and promote locally-produced pharmaceutical products while actively seeking direct foreign and local investment in the sector. This dual strategy not only fosters economic growth but also enhances healthcare sustainability and self-sufficiency.
Promoting locally produced pharmaceuticals is a key step towards building a resilient healthcare system. Dependence on imported drugs and other health products leaves the country vulnerable to disruptions in the global supply chain, as witnessed during the early days of the Covid-19 pandemic.
By investing in and promoting local pharmaceutical manufacturing, Kenya can create a self-sufficient ecosystem that not only meets domestic demand, but also positions the nation as a regional pharmaceutical hub.
Boosting local capacity requires a multi-faceted approach. The government should provide incentives, such as tax breaks and subsidies, to encourage the establishment and expansion of local pharmaceutical companies. Additionally, fostering partnerships between the public and private sectors can enhance research and development capabilities, driving innovation in drug discovery and production.
But there’s another rather obvious but important thing that Questa Care pointed out in its statement to the public, that of job creation and economic growth.
The pharmaceutical industry has the potential to be a major contributor to Kenya's economic growth. By promoting local production, the government can stimulate job creation across the entire value chain – from research and development to manufacturing, distribution and sales. This not only reduces unemployment but also creates a skilled workforce that can contribute to other sectors of the economy.
Moreover, a thriving pharmaceutical industry can attract foreign investors seeking to capitalise on Kenya's growing market. Direct foreign investment brings not only capital but also expertise and technology transfer, further enhancing the capabilities of the local pharmaceutical sector. This synergy between local and foreign entities can create a dynamic industry that contributes significantly to the country's GDP.
And there is more.
A robust local pharmaceutical industry contributes to increased accessibility and affordability of healthcare. Locally-produced drugs and other health products are often more cost-effective than their imported counterparts due to reduced transportation and importation costs. This, in turn, makes essential medications more affordable for the general population, improving overall healthcare outcomes.
Furthermore, a diversified pharmaceutical market can lead to increased competition, which tends to drive down prices. This competition is not only beneficial for consumers but also encourages innovation among local manufacturers to produce high-quality, cost-effective medicines.
And then there is that benefit of global competitiveness and regulatory compliance. Encouraging foreign direct investment in the pharmaceutical sector brings with it exposure to international best practices and regulatory standards. Collaborating with established foreign pharmaceutical companies can help local manufacturers align their operations with global quality and safety standards.
Like Questa Caren said, strategic partnerships with multinational pharmaceutical companies facilitates technology transfers for the production of various lifesaving drugs, including pandemics like Covid-19, antiretrovirals for HIV/AIDS and addiction therapies. This not only enhances the credibility of locally produced drugs and products, but also facilitates their acceptance in international markets.
By fostering a regulatory environment that is conducive to both local and foreign investors, Kenya can position itself as a reliable and competitive player in the global pharmaceutical market. This, in turn, can attract more foreign investment, leading to a positive cycle of growth and development.
In conclusion, the promotion of locally-produced pharmaceutical products and the attraction of direct foreign investment are critical steps for Kenya's healthcare and economic future. By building a self-sufficient pharmaceutical ecosystem, Kenya can insulate itself from global supply chain disruptions, create jobs, stimulate economic growth and improve healthcare accessibility and affordability.
Consequently, the government must play a central role in creating an enabling environment through policy frameworks, incentives and partnerships. Collaboration between the public and private sectors, both locally and internationally, is key to realising the full potential of the pharmaceutical industry.
As the nation charts its course towards a healthier and more prosperous future, investing in local pharmaceuticals and attracting foreign investment is not just a strategic choice; it is a prescription for a stronger, more resilient Kenya.
That is the way to go.
The writer is a political commentator