Insights from the EPN Market Assessment and Procurement Analysis
EPN is leading a three-year initiative to improve access and affordability of twelve priority Maternal, Neonatal, and Child Health (MNCH) and nutrition products in Kenya and Nigeria. Targeting 100 faith-based facilities in Kenya and 150 in Nigeria, the project is implemented in partnership with Christian Health Association of Kenya (CHAK), Christian Health Association of Nigeria (CHAN), Mission of Essential Drugs and Supplies (MEDS), CHAN Medi-Pharm (CMP), Axmed, HATCH Technologies, NEST360, and Field Intelligence.
To ensure supply chain efficiency and cost savings, EPN is expanding the supplier base and leveraging demand aggregation to negotiate better prices. A market shaping analysis was conducted with external consultants to assess forecasting accuracy, pricing, supplier quality, and the sustainability of the pooled procurement and DRF model. The expert-led study was conducted to assess the accessibility, affordability, and quality of maternal, newborn, and child health (MNCH) products within the faith-based organizations (FBO) sector in Kenya and Nigeria. It evaluated current product cost, forecasting accuracy, product availability, quality assurance compliance, and feasibility of pooling procurement across facilities. Key stakeholders included faith-based organizations (FBOs), government agencies, and international development partners working to improve medicine access and affordability across these markets.
Key insights from the Kenyan market
- A. Price Competitiveness: Pooled procurement approaches have shown significant cost savings for the majority of key products, emphasizing the value of aggregated purchasing strategies. A partner-led pooled procurement approach achieved cost savings of up to 20% across 9 out of 12 key products. This reflects the effectiveness of coordinated procurement mechanisms in driving down costs and improving access to essential health products.
- B. Product Gaps Identified: Innovative MNCH products such as Calibrated drapes, Ferric Carboxymaltose, Heat stable carbetocin and Multi Micronutritient Supplements were either non-existent or had low penetration within the FBO sector. Lack of some of these products in the Kenya Essential Medicines List (KEML) was also noted.
- C. Regulatory Oversight: While most brands under pooled procurement were registered and valid through 2025, a few essential products were found to be missing from national regulatory listings, highlighting the need for continued regulatory engagement to ensure critical product licensing and registration. GMP/GSDP audits are recommended before issuing orders.
Key insights from the Nigerian market
-
- a). Registration Challenges: New products such as Ferric Carboxyl Maltose have not yet been registered with national regulatory authorities. EPN Network has taken the initiative to engage with regulatory bodies i.e. NAFDAC to support proper registration and ensure access to quality-assured products.
- b). Pooled procurement mechanism demonstrated up to 39% savings on select commodities
- d). Quality Concerns: Using minilab and compendial testing done through the EPN Member Network Labs combined with desk research on product recalls by the regulator, some products were found to have quality issues. This emphasizes the crucial role EPN and its network has in testing product quality through our minilab network and WHO prequalified lab.
- d). Distribution Challenges: Both MEDS (Kenya) and CMP (Nigeria) will need to strengthen their last-mile delivery strategies, considering obstacles like floods, insecurity, and poor road infrastructure to ensure reliable distribution to remote areas.
Key Challenges
- Supply Chain Gaps: The delivery of healthcare products to rural and remote areas remains a significant hurdle, limiting access to essential medicines for under-served populations.
- Quality Control Issues: Inconsistent Good Storage and Distribution Practices compliance among distributors and last mile users presents a risk to product quality and patient safety.
- Regulatory Barriers: Complex and lengthy product registration processes hinder the timely introduction of new healthcare commodities into the market.
- Financing Constraints: Limited access to affordable financing options for healthcare facilities and drug revolving funds restricts the effective procurement of essential medicines.
- Technology Gaps: The lack of robust digital health infrastructure hampers real-time monitoring of inventory, delivery, and healthcare service access.
Market Opportunities for Growth and Improvement
- Digital Health: The growth of mobile health solutions and tele-medicine offers opportunities to enhance healthcare access, especially in rural areas where traditional infrastructure is lacking.
- Local Manufacturing: Increased pharmaceutical production capacity in East Africa presents an opportunity to reduce dependence on imports and boost local economies.
- Public-Private Partnerships (PPP): Strengthening collaboration between governments, private sector players, and international donors will help improve supply chain resilience and healthcare delivery.
- Regional Integration: Leveraging on the East African Community (EAC) trade ecosystem offers a chance for smoother cross-border trade and expanded access to essential medicines.
- Innovation Hub: The growing health tech ecosystem in the region presents opportunities for innovation in areas such as digital supply chain management, data analytics, and patient care.
Key Recommendations
To improve healthcare access and supply chain efficiency especially in the 2 countries, the following recommendations are crucial:
- Implement a sustainable Pooled Procurement: This will leverage bulk purchasing to achieve cost savings and enhance supply efficiency, with savings of up to 39% on key commodities.
- Expanding Supplier Base: There is a need to engage more quality-assured suppliers and diversify sourcing options to reduce dependence on a few suppliers and ensure reliable medicine availability.
- Conducting GMP/GSDP Audits: Audit non-registered suppliers to ensure adherence to Good Manufacturing and Distribution Practices, guaranteeing the quality of healthcare products.
- Engage National Authorities: Work with NAFDAC (Nigeria) and PPB (Kenya) to expedite product registration and align with national essential medicines lists for smoother procurement.
- Strengthening Forecasting Practices: Alignment procurement with actual consumption data to reduce stockouts and wastage, improving overall inventory management.
- Institutionalized Annual Market Surveys: Conducting yearly surveys to track emerging trends, new products, and evolving regulations for responsive and adaptive supply chain strategies.
In addition, expanding rural distribution networks, enhancing cold chain logistics, and fostering partnerships with local manufacturers and international donors will further optimize healthcare delivery and reduce costs. Streamlining operations and adopting digital technologies will improve overall efficiency and accountability in healthcare supply chains.
Conclusion
EPN’s proactive approach through pooled procurement and market shaping is a major step forward in ensuring affordable, high-quality MNCH care for under-served communities in Kenya and Nigeria. This initiative not only fosters better pricing and access but also enhances health system resilience through improved supply chain practices and regulatory alignment. As the project progresses, continuous stakeholder collaboration and data-driven adjustments will be critical to its sustained success.
