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Higher Outlays and Improved Regulatory Enforcement Create Opportunities in the Kenyan Healthcare Industry, Reveals Frost & Sullivan

CAPE TOWN, South Africa, May 5 /PRNewswire/ -- Increased public and private expenditure on healthcare, coupled with increasing levels of medical insurance coverage and continued foreign donor funding are creating significant opportunities for growth within the Kenyan healthcare industry. The pharmaceutical and medical devices industries will exhibit continued expansion as the government boosts the allocation of resources for regulatory enforcement.


New analysis from Frost & Sullivan (, Strategic Analysis of the Healthcare Industry in Kenya, finds that the pharmaceuticals and medical devices markets earned revenues of $208.6 million and $40.4 million respectively, in 2007 and estimates them to more than double by 2014 to reach $558.5 million and $85.6 million respectively.

"Growth in the healthcare industry in Kenya will be supported by increasing expenditure on healthcare, within both public and private sectors," notes Frost & Sullivan Research Analyst Lore Kannegiesser. "This will be paralleled by improved regulatory enforcement, which will result in decreased competition from poor quality and counterfeit products."

The Ministry of Health has undertaken to widen access to affordable, high quality healthcare through enhanced allocation of resources to the healthcare industry. This expanded outlay within the public sector, coupled with rising private expenditure and greater levels of insurance coverage, will drive the further growth of the medical devices and pharmaceutical industries.

However, the Ministry of Health acknowledges that enforcement of regulations governing the pharmaceutical industry has been poor. In addition, there has been no legislation around the regulation of the medical devices industry. Consequently, there has been a proliferation of poor quality and counterfeit products on the market. These products are usually lower priced than legitimate and higher quality products, and thus hinder the growth of the formal market.

Furthermore, the government remains the major purchaser of medical devices and pharmaceuticals. Government tenders are largely awarded on the basis of cost, which means that market is largely price sensitive.

"As the uptake of capital equipment is particularly limited in this price-sensitive market, medical device manufacturers and distributors should consider pursuing a business model incorporating the placement of capital equipment," advises Kannegiesser. "This should include a contract for the purchase of consumables and technical service or maintenance."

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Patrick Cairns, Corporate Communications, at, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

Strategic Analysis of the Healthcare Industry in Kenya is part of the Medical Devices Growth Partnership Service programme, which also includes research in the following markets: Strategic Analysis of the Healthcare Industry in Tanzania, Key Nigerian Orthopaedic Implants Markets, South African Clinical Laboratory Products Markets and, Medical Insurance Markets in Key Sub-Saharan African Countries. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit

Strategic Analysis of the Healthcare Industry in Kenya


    Patrick Cairns
    Corporate Communications - Africa
    P: +27 18 468 2315

SOURCE Frost & Sullivan
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