Kenya's Pharma industry on recovery path, growing at CAGR of 13.5%

Kenya's pharmaceutical industry is on a rebound, riding on the back of increased expenditure in healthcare and general economic growth over the years, reports the local Business Daily newspaper.

Sales of over-the-counter (OTC) and prescription drugs clocked up sales of 17.7 billion Kenyan shillings ($234.6 million) in 2008, up 22.9% from Sh14.4 billion the previous year, according to the Kenya Pharmaceutical and Health Report 2010, a new report by Research and Markets. "By 2014, the Kenyan drug market is expected to hit a value of Sh33.5 billion, equating to a compound annual growth rate (CAGR) of 13.53% in local currency terms and 22.8% in US dollar terms," says the study.

Moses Mwangi, the chairman of Kenya Association of Pharmaceuticals Industry (KAPI), says public procurement has been a key source of growth. "The government has made some important reforms in the health sector. The formation of Kenya Medical Supply Agency has resulted in efficient procurement processes," he said. The government spends Sh12.5 billion annually on drugs and other supplies, making it the largest buyer.'