BUSINESSHEALTH

Ksh5 Billion Pharmaceutical Factory to be Set Up in Kisumu

Afreximbank partners with Med Aditus to boost local pharmaceutical production of essential medicines in Kenya

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Med Aditus Pharmaceutical
Mr Zitto Alfayo, Head of Project Preparation at Afreximbank (left), and Dr Dhiren Thakker, CEO of Med Aditus (right), sign the agreement in Kisumu, Kenya. Looking on are Mrs Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, and Prof. Peter Anyang’ Nyong’o, Governor of Kisumu County.
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African Export-Import Bank (Afreximbank) and Kenya-based Med Aditus Pharmaceutical Kenya Limited (Med Aditus) have signed a project preparation facility agreement at the margins of the fourth edition of the African Sub-Sovereign Governments Network (AfSNET) Conference in Kisumu City, Kenya.

The project preparation facility will be deployed to part-finance the preparation of feasibility studies towards the development of Med Aditus pharmaceutical manufacturing plant.

Estimated to cost US$ 40 million (Ksh5 billion), the plant will be situated on 10 acres of land in Kibos, Kisumu County, Kenya, and will boast an annual production capacity of two-billion tablets/capsules. The specialist plant will focus on the production of tablets and capsules to treat non-communicable diseases including cardiovascular cases, diabetes and cancer, as well as infectious diseases from HIV and malaria to tuberculosis, not to mention production of drugs targeting neglected tropical diseases.

Designed as a state-of-the-art pharmaceutical manufacturing plant that will comply with Current Good Manufacturing Practice (cGMP), the plant will deploy continuous manufacturing technology integrated with blockchain-powered quality management system and pursue an innovative and cutting-edge approach to producing pharmaceutical products, marking a first-of-its-kind in Africa.

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The establishment of the pharmaceutical manufacturing facility is expected to strengthen and boost local production of essential medicines, improving access to more affordable and quality medicines across Kenya and neighbouring countries. This will help enhance resilience to supply chain disruptions and also reduce the proliferation of counterfeit and low-quality medicines.

Afreximbank’s intervention is part of its ‘Africa Health Security Investment Plan” to support the health product manufacturing ambition of the continent. This initiative is pivotal in addressing Africa’s health investment challenges, promoting economic development, and strengthening health security across the continent.

Prof. Peter Anyang’ Nyong’o, Governor of the County of Kisumu and Mrs. Kanayo Awani, Executive Vice President Intra African Trade and Export Development witnessed the signing of the agreement during the 4th Africa Sub – Sovereign Network (AfSNET) conference in Kisumu.

Mr. Zitto Alfayo, Head of Project Preparation at Afreximbank signed the agreement on behalf of the Bank while Dr. Dhiren Thakker, Chief Executive Officer of Med Aditus signed on behalf of his company.

Mrs. Awani, welcomed the establishment of the Med Aditus Pharmaceuticals project and said: “The partnership with Med Aditus demonstrates Afreximbank’s close cooperation with public and private partners to accelerate development of innovative solutions for combating deadly diseases and scaling up healthcare financing and delivery.”

She said the project’s strategic location in Kisumu, at the heart of the Great Lakes Region gives it access to markets in Kenya, Uganda, Tanzania, DR Congo, Rwanda, Burundi and South Sudan thereby promoting Intra-African trade within the AfCFTA context.

Dr Thakker said the plant will facilitate access to high-quality affordable medicines to the citizens of Kenya, East Africa, and the continent at large. Med Aditus Group’s commitment is to promote rapid growth of the local pharmaceutical manufacturing that will enhance healthcare outcomes of the people and stimulate economic development throughout the region, he said.

Med Aditus Pharmaceuticals Kenya Limited was established as a special purpose vehicle.

“By leveraging continuous modular manufacturing technology alongside blockchain integration in manufacturing, distribution and supply chain logistics, and ultimately patient engagement, deployed for the first time in Africa, the continent will leapfrog into a leading producer and supplier of high-quality affordable medicines for its people and the global community,” he added.

Med Aditus Pharmaceuticals Kenya Limited was established as a special purpose vehicle to design, develop, finance, operate and maintain the pharmaceutical plant on land secured through a concession agreement with the County Government of Kisumu. The estimated project cost of US$ 40 million includes US$ 26 million of debt financing and US$ 14 million of equity financing.

The AfSNET Conference, organised by Afreximbank, in collaboration with the County Government of Kisumu and the United Cities and Local Governments of Africa from 25 to 27 November, sought to strengthen the role of Sub-Sovereign governments in driving intra-African trade and investment and the successful implementation of the African Continental Free Trade Agreement. The theme of the conference was, ‘Leveraging the AfCFTA for Sustainable Trade and Investment: A Development Pathway for African Sub-Sovereigns.’

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BT Reporter -

editor [at] businesstoday.co.ke

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