GlaxoSmithKline Ditches Commercial Operations in Kenya

UPDATE – 10/14/2022:

A spokesperson for GlaxoSmithKline clarified to Business Today that GSK had in July demerged its consumer healthcare business creating Haleon, under which brands such as Sensodyne and Panadol fall. GSK clarified that the production facility in Industrial Area is a Haleon facility, and is therefore not the subject of the decision by GSK to cease commercial operations in the country.

GSK employees working in commercial operations are set to lose their jobs. GSK promised to support them through the transition.

“From time to time, we look at our business models and ways of working to make sure we can continue to meet patient needs and stay competitive in a dynamic operating environment. This week, we informed GSK employees in Kenya that we will move to a direct distribution model and our operations will be transferred to third-party distributors. We will continue to supply our needed medicines and vaccines in Kenya, and we will work with our distribution partners towards a smooth transition in 2023. GSK does not operate any manufacturing sites in Kenya,” the company disclosed.

“Our current commercial operations are staffed by skilled professionals dedicated to ensuring our medicines and vaccines are made available to patients who need them, and this decision has not been taken lightly. We understand the impact of this proposal on them, their families, and the region affected. Our immediate priority is to support them through this change. We are committed to communicating openly and transparently with all our stakeholders as we transition to this new way of working.”  

Pharmaceuticals giant  GlaxoSmithKline (GSK) Kenya has confirmed that it will cease commercial operations in Kenya. The company further confirmed anticipated job losses for employees working in commercial operations, in an economy reeling from record-high inflation.

The company informed its staff members in Kenya that commercial operations would be transferred to third-party distributors. GlaxoSmithKline Kenya further sought to assure its clients and partners in the country and the region that it would ensure a seamless transition in 2023 to ensure no disruptions.

Major pharmaceutical companies including GSK have been fighting to compete with generic medicines from India as well as locally-manufactured medicines, which are more affordable for many Kenyans.

GSK has been slimming its footprint on the continent over the past half decade. It halted marketing of drugs to healthcare practitioners in 29 African countries. It however continued running local operations in Kenya and Nigeria and retained representative offices in Ghana and Ivory Cost.

In Kenya, it sells various antibiotics and painkillers including the popular ‘Panadol’ as well as Malaria and HIV/Aids medicines.

Following the Kenya exit, the company is present on the continent only in in Algeria, Egypt, Morocco, South Africa, Nigeria and Tunisia.

The exit of multi-national manufacturers including Cadbury, Dettol and now GSK, has been worrying as it echoes concerns of businesses concerned over the unpredictable tax regime and the rising overall cost of doing business. The exits, have however, been partly offset by global tech giants setting up shop in the country – such as Google and Microsoft.

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