Moderna pauses efforts on Kenya manufacturing facility

US mRNA medicines company Moderna (Nasdaq: MRNA) has paused its efforts to build a manufacturing facility in Kenya while it determines future demand for mRNA vaccines on the African continent.

The Boston-based company struck a deal with the Kenyan government a year ago to invest about $200 million in a facility that would produce up to 500 million vaccine shots a year. Reportedly, it has yet to buy a plot earmarked for it in a special economic zone near Nairobi.

The demand in Africa for COVID-19 vaccines has declined since the pandemic and is insufficient to support the viability of the factory planned in Kenya. Moderna said it has not received any vaccine orders for Africa since 2022 and has faced the cancellation of previous orders, resulting in more than $1 billion in losses and write-downs.