Ministry intends to align drug prices with WHO standards

The government is considering regulating drug prices to ensure that they do not exceed international market prices.

The announcement comes after the Kenya Medical Supplies Agency (Kemsa) brought down its prices to within eight percent of the international prices, down from 35 percent.

The move came after a study by the Ministry of Health and the World Health Organisation (WHO) revealed that some drugs were selling for double the international prices, or even higher.

Health Cabinet Secretary Sicily Kariuki believes the move will boost the country’s efforts to achieve universal healthcare by 2022.

AFFORDABLE

Lack of a local market reference index, she said, greatly hinders affordability in the Universal Health Coverage (UHC) programme.

“We have never had a mechanism to regulate the pricing of medical and basic commodities in the market. This has made it easy for entities to sell drugs at their own prices. The mechanism will determine a standard price and ensure that certain prices are not exceeded,” Ms Kariuki said.

She said the Ministry and WHO have also agreed on international price references for basic commodities.

Ms Kariuki said that with UHC, no Kenyan should buy drugs at a high cost.

“Affordability is a key pillar of UHC. Most Kenyans lack reliable access to needed medicines. The high price of medicines is a key factor in their inaccessibility. High prices are particularly burdensome to patients who have to pay for drugs themselves.”

She said the cost of medical procedures will also be standardised.

PRICES

The survey, Medicine Prices in Kenya, conducted in the public, private and NGO sectors, noted that the high cost and shortages of a few specific medicines in the country were major problems.

Surveyed drugs included a standardised core group of 30 and a supplementary one of 15 specific to Kenya.

Medicines in the supplementary group were selected because of the importance and frequency of their use in treating common health problem.

The survey was done in 53 public health facilities, 57 private sector outlets and 47 mission/NGO health facilities.

The findings showed that drug prices in public health institutions were 20 percent lower than in the NGO sector, and 30 percent lower than in private facilities.

PROCUREMENT

The prices in private facilities were 48 percent higher than in the public sector, and 19 percent higher than in NGO-run facilities.

“In the private sector, the prices patients are charged for medicines varied from facility to facility. In some cases, the prices varied by many multiples, while in the NGO facilities, patients are charged at least five times the published international prices for the lowest priced drugs,” the survey noted.

Another report by the Ethics and Anti-Corruption Commission (EACC) also revealed how counties greatly mark up the prices of drugs supplied by Kemsa.

“The EACC report exposed systemic weaknesses and opportunities in the procurement and dispensing of pharmaceutical and non-pharmaceutical supplies in the public sector, which denies most Kenyans access to quality, affordable medical products; and that’s why we had to move with speed to develop the pricing index,” she said.

DETERRENT

The difference in drug pricing has forced the Kenya Medical Supplies Agency to reduce its market price by eight percent.

“Kemsa has done an assessment in the market and found out that prices range between 40 and 100 percent. As an organisation, we have brought this down to eight percent. Previously, we were at 35 percent price,” Kemsa CEO Jonah Mwangi said.

The price reduction will ensure that more Kenyans can afford drugs, especially in public hospitals, he said.

Pharmacy and Poisons Board CEO Fred Siyoi said the high cost of drugs could be one of the reasons most Kenyans do not seek health services.

“You might wonder why one would decide to die at home yet healthcare is free. Drugs are too expensive for them,” he said.

Dr Siyoi added that the government might be forced to enact a law capping drug prices.