US President Donald Trump has announced plans to sign an executive order slashing pharmaceutical medicine prices in the United States by between 30 to 80 per cent—a move expected to significantly impact global markets, including Kenya’s pharmaceutical sector.
In a statement, Trump disclosed that the order will be signed on Monday at 4pm, Kenyan time, and will compel pharmaceutical companies to sell their products in the US at the lowest global rates. The directive is part of his broader push to implement a "most favoured nation" pricing policy.
This development could pose a challenge for Kenya, which heavily relies on pharmaceutical imports from the US, among them thousands of patients suffering from diabetes.
In 2023 alone, Kenya imported approximately Ksh7.8 billion (USD 60.6 million) worth of pharmaceutical products from the US, making it the country's third-largest source after India and China.
''I will be instituting a most favoured nation's policy whereby the United States will pay the same price as the nation that pays the lowest price anywhere in the world,'' Trump stated.
Kenya’s pharmaceutical imports from the US comprise mainly medication in retail packaging, with a trade worth of Ksh5.6 billion (USD43.35 million) imported in 2024, according to data from Trading Economics.
The medications category includes common prescription and over-the-counter medicines used widely in healthcare facilities and pharmacies, including insulin products used for the management of diabetes.
Other major imports include vaccines, blood products, and antisera, which were valued at Ksh2.1 billion (USD16.17 million). These mainly target public health campaigns and immunisation programs.
With Trump's directives, American companies exporting medical products to Kenya and other countries might be forced to adjust the prices of their supplies to cover their profits.
Americans pay an average of about three times more for prescription medication than do customers in other countries, a 2024 report found.
However, Trump did not specify details on how the order would be carried out or whether it would be limited to Medicare and Medicaid product prices. Trump said the plan will save the US trillions of dollars.
The plan could hit pharmaceutical companies hard, severely undercutting their revenues, according to the New York Post.
