Square Pharmaceuticals EPZ Ltd managing director Tapan Chowdhury, Industrialization CS Adan Mohamed and other stakeholders during the groundbreaking ceremony of the company's new plant at Export Processing Zone in Athi River, Machakos County on Monday, January 8, 2018 (Photo/Maugo Owiti)The Sh 7.5 billion Square Pharmaceuticals Ltd manufacturing plant in Kenya will help the government deal with counterfeit problem, says Industrialization CS Adan Mohamed.

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Mohamed said counterfeit was a major problem in the health sector, “if you have experts on the ground manufacturing drugs, it will help us deal with counterfeits,” said Mohamed.

He spoke during the groundbreaking ceremony for Square pharmaceuticals EPZ at Export Processing Zone in Athi River, Machakos County on Monday.

Mohammed said currently, the local pharmaceutical manufacturing sector has the capacity tosupply only 28%.

He noted that nearly 70% of Kenya’s pharmaceutical demand is covered by imports with regular import growth of 11.45% in the last three years on average.

Mohamed said foreign direct investments such as that of Square Pharmaceuticals willplay key role in development of the local manufacturing sector through investments in research, design technology transfer.

“The construction of a local pharmaceutical manufacturing plant will bring significant industrial benefits such as technology transfer and demand for education and training, development of pharmaceutical production sector and create employment opportunities as envisaged in Kenya’s Vision 2030,” said Mohamed.

Commenting on the investment, Khama Rogo, Lead Health Specialist, IFC/World Bank Group reiterated the importance of the pharmaceutical sector in ensuring Universal Health Coverage and access to quality and affordable medicines in tackling the double burden of communicable and non-communicable diseases in Kenya and Africa.

“Universal Health Coverage is a key priority area for governments in Africa in which the pharmaceutical sector bears a close linkage, investment in a local pharmaceutical manufacturing facility willnot only make Kenya and the region ready with the latest drugs to respond to communicable and non-communicable diseases,” said Rogo.

Referring to the commissioning, Fanuel Kidenda, CEO Export Processing Zone Authority said, “The investment of Sh7.5 billion state of the art pharmaceutical manufacturing facility at the Athi River EPZ is in line with the government’s initiative on the “Big Four” thematic areas being implemented to boost universal health coverage and growth of the manufacturing sector thereby creating jobs and ensuring skills and technology transfer to Kenyans.”

Additional expected benefits include increased tax revenues and reduced balance-of-payments outflows.

Other dignitaries who attended the groundbreaking ceremony included H.E (Maj. Gen.) Abulkalam Muhammad Humayon Kabir – High Commissioner of Bangladesh to Kenya, Dr. FM Siyoi – Registrar Pharmacy and Poisons Board among others.