• $500 million project to set up vaccine and pharma centers with Chinese tech 

• Aims to cut imports, boost jobs, and make Kenya a health manufacturing hub

• Healthcare budget rises to $1.58B; key reforms include universal coverage

Kenya and China plan to establish local vaccine and pharmaceutical production centers using Chinese technology, the Kenyan Ministry of Health announced on June 9.

The $500 million initiative is designed to strengthen Kenya’s supply chains, reduce reliance on imports, and create jobs, aligning with national development goals. The project also aims to position Kenya as a continental leader in health product manufacturing by 2028.

Health Cabinet Secretary Hon. Aden Duale today held a strategic engagement with a Chinese delegation led by Ambassador H.E. Ms. Guo Haiyan to discuss the establishment of local vaccine and pharmaceutical production hubs using Chinese technology.

The USD 500 million… pic.twitter.com/GQSjhKi15L

— Ministry of Health (@MOH_Kenya) June 9, 2025

China has also pledged 500 scholarships and 20 annual exchange programs in the health sector. These measures support Kenya’s broader efforts to build a stronger healthcare system and a regional hub for quality manufacturing. However, challenges persist, including poor access to care, limited medical equipment and drugs, and a shortage of health workers.

To address these issues, the government has launched several reforms, including universal health coverage introduced last December, and the creation of the Social Health Authority (SHA), which oversees contributions and aims to ensure equitable distribution of services.

Kenya’s Export Processing Zones (EPZ) continue to offer favorable conditions for pharmaceutical investors, reflecting ongoing efforts to expand the manufacturing sector.

For the 2024–2025 budget year, Kenya allocated 204.5 billion shillings ($1.58 billion) to the health sector, up from 127 billion shillings the previous year.