Government Explores Financing Fund for Local Health Manufacturers
Nairobi, - The Ministry of Health is exploring the establishment of a dedicated financing fund to support local manufacturers of medicines, vaccines and other health products.
Principal Secretary for Medical Services Dr. Ouma Oluga discussed the proposed initiative with Consolidated Bank Chief Executive Officer Dr. Dominic Murage and Kenya BioVax Institute Chief Executive Officer Dr. Wesley Ronoh.
Under the proposed partnership, Consolidated Bank will work with the Ministry to develop the financing mechanism, while Kenya BioVax Institute will provide technical support to strengthen manufacturing capacity, technology transfer and innovation.
The initiative builds on the commitment made by President William Ruto at the Kenya Health Summit 2026 to create an enabling environment and expand financial support for local manufacturers as part of efforts to strengthen Kenya’s health security and advance Universal Health Coverage.
Consolidated Bank, which is wholly owned by the National Treasury, is being positioned to provide financial services and support to government ministries, departments and agencies.
Dr. Oluga welcomed the proposed collaboration, noting that the Ministry has established a strong foundation for local manufacturing through policy interventions, development of a manufacturing strategy, a framework for health countermeasures and an assessment of domestic manufacturing capacity.
“We have put in place the necessary policy and strategic framework to support local manufacturing. What we now need is to translate these interventions into increased production capacity, technology transfer and sustainable financing for local manufacturers,” he said.
The Government is also advancing research, technology transfer and vaccine manufacturing through Kenya BioVax Institute. It is exploring strategic partnerships, including with the Medicines Patent Pool, to strengthen local vaccine research and production.
Dr. Oluga highlighted procurement reforms being implemented at the Kenya Medical Supplies Authority to expand opportunities and create a predictable market for locally manufactured health products.
“We have put in place market reforms that give local manufacturers a 15 per cent preference over imported products, alongside preferential procurement mechanisms that create a predictable market for locally manufactured products,” he said.
He noted that collaboration among government institutions is essential to building a resilient domestic health manufacturing sector.
Strengthening local production is expected to improve access to quality health products, reduce reliance on imports, enhance health security and support the Government’s Universal Health Coverage agenda.