Kenya is spending far less on imported medicines as the government's campaign to grow local pharmaceutical manufacturing begins to show results.
New official data shows the country's drug import bill dropped by nearly a quarter in the first three months of the year, even though more medicines were brought into the country during the same period.
Figures from the Kenya National Bureau of Statistics show Kenya spent Sh15.6 billion on medicinal and pharmaceutical products between January and March 2026, down from Sh20.4 billion during the same period last year.
The reduction of Sh4.8 billion represents a 23.52 percent drop and marks the second consecutive year that the country's expenditure on imported medicines has declined.
The lower spending was recorded despite an increase in import volumes. The quantity of medicinal and pharmaceutical products brought into the country rose by 13.1 percent to 8,632.2 tonnes from 7,632.1 tonnes recorded during the corresponding period in 2025.
The decline in the import bill may have been driven by lower global prices for pharmaceutical raw materials, a shift by importers towards cheaper generic medicines, and increased production by local pharmaceutical firms.
The growing capacity of domestic manufacturers means some medicines that were previously sourced from foreign markets are now being produced locally, reducing the need for more expensive imported finished products.
Even so, Kenya remains heavily dependent on imported medicines. Industry experts say more than 85 percent of the country's essential medicines are still sourced from outside Kenya, with local manufacturers mainly producing basic medicines while more specialised products continue to be imported.
The latest figures come as the government steps up efforts to reduce that dependence through increased local manufacturing.
A directive issued in 2023 set a target of producing half of the medicines listed under the Kenya Essential Medicines List within the country by the end of this year.
Health CS Aden Duale said expanding local pharmaceutical production remains a key part of Kenya's plan to strengthen what he described as the country's health sovereignty. He pointed to a 22 percent reduction in pharmaceutical import spending between 2024 and 2025.
“Health security cannot be outsourced. Countries that do not produce essential health products remain exposed to external shocks,” he said.
The government last month launched the Ministry of Health's Local Manufacturing Strategy 2026–2030, which aims to remove obstacles slowing the growth of the pharmaceutical industry while attracting investment and supporting expansion.
Principal Secretary for Medical Services Ouma Oluga said local manufacturing offers Kenya its biggest opportunity to lower healthcare costs and secure a steady supply of medicines.
“The strategy seeks to address barriers that have limited the growth of local manufacturing while creating an environment that encourages investment, innovation, and industrial expansion,” said Dr Oluga.
He added that local manufacturing was the single largest lever the country has left to pull on cost, saying a health system cannot be sustained if it cannot be reliably supplied.