Kenya: Pharmaceutical Manufacturers Warn of Disruptions Over Delayed Vat Exemptions
[Capital FM] Nairobi -- Pharmaceutical manufacturers have warned that delays in processing VAT exemptions could disrupt the production and supply of medicines and other healthcare products in Kenya.
Nairobi — Pharmaceutical manufacturers in Kenya are expressing concern over the potential disruptions to the production and supply of medicines and healthcare products due to delays in processing VAT exemptions. The Federation of Kenya Pharmaceutical Manufacturers reports that companies are currently operating at approximately 30 percent capacity while awaiting the full implementation of VAT exemptions under the Finance Act 2026.
The law has reclassified inputs, raw materials, and packaging materials used in pharmaceutical production from zero-rated to VAT-exempt. However, manufacturers claim the approval process has become excessively complicated, with exemptions now processed on an individual consignment basis rather than for a list of products. This results in at least 500 containers being imported each month, making it impractical to obtain individual approvals for every shipment.
The federation urges the government to simplify the process and ensure that manufacturers can access VAT exemptions without significant administrative delays. The manufacturers warn that such disruptions not only threaten the industry's operations but also jeopardize the availability of healthcare products for Kenyan citizens. AllAfrica reports from numerous news organizations and individuals, but the final responsibility for content accuracy rests with the individual publishers.
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