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KDC seeks to bridge funding gap in drugs manufacture
Ministry of Investments, Trade & Industry Cabinet Secretary Lee Kinyanjui makes his remarks during a past forum held at the Nairobi Serena Hotel on October 15, 2025.
The Kenya Development Corporation (KDC) is exploring long-term financing and equity investment vehicles, tailored to the pharmaceutical sector as the government moves to reduce the heavy reliance on imported medicines.
The financing push was disclosed during a pharmaceutical manufacturing investors’ forum held in Nairobi, bringing together policymakers, manufacturers and health sector stakeholders.
KDC is a state Corporation under the Trade Ministry, mandated to promote sustainable economic development by providing finance, appropriate infrastructure, business support and advisory services to medium and large-scale industries.
The Corporation says the proposed financing structures are aimed at supporting expansion of local pharmaceutical manufacturing capacity and strengthening the domestic supply chain.
The financing initiative is part of a broader policy effort to support localisation of medicine production and improve the sector’s competitiveness.
The pronouncement comes at a time when imported medicines account for more than 70 percent of the country’s pharmaceutical supply, exposing Kenya to foreign exchange pressure and global supply disruptions.
State officials present at the forum said import dependence has also contributed to rising healthcare costs.
Investment Promotion PS Abubakar Hassan Abubakar said the government will also be supporting the sector through incentives such as Special Economic Zones and policy adjustments.
Mr Abubakar said the aim is to expand domestic manufacturing capacity and reduce structural barriers facing local producers.
“The urgency of this paradigm shift is underscored by Kenya’s overreliance on imported medicines, currently accounting for more than 70 percent of its supply,” he said.
Kenya’s pharmaceutical industry has remained constrained despite growing healthcare needs, forcing continued reliance on foreign suppliers.
The government says closer coordination between industrial policy and health sector procurement will be key to changing that structure.
Trade and Industry Cabinet Secretary Lee Kinyanjui said the government will work with the Ministry of Health to support uptake of locally produced pharmaceutical products.
“Our role as a ministry is to spur economic growth. No country can thrive through imports alone,” said CS Kinyanjui.
Officials say stronger domestic pharmaceutical production is also poised to position Kenya as a regional manufacturing and logistics hub.
Kenya’s ambitions align with wider continental efforts to expand local production of medicines and vaccines.
Africa has set an ambitious target of manufacturing at least 60 percent of its vaccines locally by 2040.
