Kenya imports more than 70% of its pharmaceutical products, making the country highly vulnerable to global supply chain disruptions, foreign exchange fluctuations, and soaring drug prices. This dependency on imported medicines poses a significant challenge to healthcare affordability and access, particularly in low-income and rural communities.
Amid these concerns, Kenya’s local pharmaceutical industry is gaining momentum. With rising demand for essential drugs, growing health needs, and supportive policy frameworks, domestic production is now seen as a critical pillar of healthcare resilience.
At the center of this transformation is Jayesh Saini, founder of Dinlas Pharma, a company that has rapidly scaled up its manufacturing capacity to meet Kenya’s growing pharmaceutical demand. This case study examines the status of local drug manufacturing, Kenya’s regulatory and infrastructure challenges, and whether the country is positioned to reduce its reliance on imports through domestic production.
1. The Current Landscape of Pharmaceutical Manufacturing in Kenya
1.1 Market Overview
- Kenya is the largest producer of pharmaceutical products in East Africa, supplying both the domestic market and neighboring countries.
- The pharmaceutical sector comprises more than 30 registered manufacturers, though most operate on a limited scale, focusing on a narrow range of generics.
- Imported medicines account for approximately 70–80% of the total market value, primarily from India, China, and Europe.
1.2 Key Drivers for Local Production
- High import costs are passed on to patients, impacting affordability.
- Global disruptions, such as the COVID-19 pandemic, exposed the fragility of import-reliant systems.
- Kenya aims to support universal health coverage (UHC) by ensuring stable supply of essential, affordable medicines.
2. Dinlas Pharma: A Model for Scalable, Localized Production
Founded by Jayesh Saini, Dinlas Pharma is a leading example of what efficient local manufacturing can achieve.
2.1 Production Capacity
Dinlas Pharma produces:
- 140 million tablets per month
- 25 million capsules per month
- 1 million bottles of syrups and suspensions per month
- 0.8 million tubes of creams and ointments per month
This large-scale output supports hospitals, retail pharmacies, and public healthcare programs across all 47 counties.
2.2 Impact on Access and Affordability
- Reduces the cost of treatment by avoiding high import duties and shipping costs.
- Ensures availability of essential generics, including antibiotics, painkillers, and chronic disease medications.
- Strengthens Kenya’s supply chain stability for both public and private healthcare providers.
2.3 Investment in Research and Compliance
- Dinlas Pharma invests KSH 100–130 million annually in R&D, focusing on affordable generics.
- Complies with Good Manufacturing Practices (GMP) and works closely with the Pharmacy and Poisons Board (PPB) for quality assurance.
- Continuously upgrades its facilities to meet regional and global regulatory standards.
3. Challenges Facing Local Pharmaceutical Manufacturers
Despite progress, Kenya’s local pharma sector faces several constraints:
3.1 Regulatory Hurdles
- Lengthy drug registration processes delay time-to-market for new products.
- Limited harmonization across EAC member states restricts regional market access.
- Inconsistent enforcement of quality standards can undermine consumer confidence.
3.2 High Cost of Inputs and Infrastructure
- Most active pharmaceutical ingredients (APIs) and packaging materials are still imported.
- Fluctuations in currency and global supply chains affect production costs.
- Electricity, transport, and logistics expenses remain relatively high in Kenya.
3.3 Workforce and Skills Gaps
- There is a shortage of highly skilled professionals in industrial pharmacy, biotechnology, and regulatory affairs.
- Few training institutions offer specialized courses in pharmaceutical manufacturing or quality control.
4. Opportunities for Growth and Export Potential
4.1 Regional Market Access
Kenya can become a regional pharmaceutical hub, supplying affordable generics across East and Central Africa, especially under:
- East African Community (EAC) integration
- African Continental Free Trade Area (AfCFTA)
Harmonizing standards and regulatory approvals across these blocs will enable Kenyan pharmaceuticals to scale regionally.
4.2 Government Support and Policy Frameworks
Supportive actions include:
- Tax incentives for local manufacturers.
- Fast-track approvals for essential drug registrations.
- Procurement preference for local suppliers in public tenders.
These measures can make local manufacturing more competitive and sustainable.
4.3 Public-Private Partnerships (PPPs)
Pharmaceutical companies like Dinlas Pharma can collaborate with:
- Ministry of Health to ensure medicine supply to public hospitals.
- NHIF to expand access to affordable medications under insurance cover.
- Research institutions and universities for clinical trials and formulation innovation.
5. Is Kenya Ready to Reduce Its Dependency on Imports?
What’s Working:
- Dinlas Pharma and others have shown scale, quality, and nationwide distribution are achievable.
- Government recognition of pharma as a strategic sector aligns with Vision 2030 and Big Four Agenda goals.
- Infrastructure development (e.g., industrial parks, SEZs) is creating favorable manufacturing environments.
What Needs Strengthening:
- Incentives for API manufacturing and raw material processing.
- Skilled technical workforce pipelines.
- Faster and more efficient regulatory systems.
- Increased investment in pharmaceutical innovation and product diversification.
With sustained effort, Kenya has the potential to cut import dependence significantly within the next decade.
Conclusion
The future of drug manufacturing in Kenya lies in scaling local capacity, improving regulatory efficiency, and fostering innovation. The example set by Jayesh Saini’s Dinlas Pharma proves that it is possible to produce quality, affordable, and widely distributed medicines locally.
To unlock this potential, Kenya must continue to:
- Support domestic producers with policy and financial incentives
- Streamline regulatory processes
- Invest in skills and infrastructure
- Promote public-private partnerships
By doing so, Kenya can move from an import-reliant pharmaceutical market to a self-sustaining and export-oriented pharmaceutical economy—securing health access for its citizens while creating jobs and boosting industrial growth.
Frequently Asked Questions (FAQs)
Who is Jayesh Saini?
Jayesh Saini is a healthcare entrepreneur and the founder of Dinlas Pharma, Lifecare Hospitals, and Bliss Healthcare. He is recognized for his contributions to local pharmaceutical manufacturing and expanding healthcare access in Kenya.
Why is Kenya dependent on pharmaceutical imports?
Due to limited local production capacity, high costs of inputs, and underdeveloped industrial infrastructure, Kenya imports over 70% of its medicines.
How is Dinlas Pharma helping reduce dependency?
Dinlas Pharma produces millions of tablets, capsules, syrups, and creams monthly—serving all counties in Kenya and reducing the need for foreign-sourced medications.
Can Kenya become a regional pharmaceutical hub?
Yes. With the right policies, investment, and regional harmonization, Kenya can expand exports across the EAC and Africa through initiatives like AfCFTA.