Kenya has entered into talks with China to set up a local vaccine and pharmaceutical manufacturing hub powered by Chinese technology. 

Health Cabinet Secretary Aden Duale met with Chinese Ambassador Guo Haiyan on Monday for a strategic engagement focused on advancing the initiative.

The Ministry of Health revealed that the joint project, valued at Ksh65 billion (USD 500 million), aims to strengthen the country’s pharmaceutical supply chains, reduce reliance on imports, and improve national health security. 

The partnership is also expected to drive job creation and support Kenya’s ambition to become a continental leader in medical manufacturing.

Health CS Aden Duale with China's Ambassador to Kenya Guo Haiyan at his office in Nairobi on June 9, 2025.

Photo

Ministry of Health

The initiative is projected to be fully operational by 2028, with the support of the Chinese government forming a key pillar of its implementation.

Meanwhile, China will give 500 scholarships and 20 annual health exchange programmes to Kenya as a key investment towards future health leadership. 

Duale, at the same time, sought Chinese support towards the transition from donor dependence to co-investment in healthcare innovation.

Further, briefing the delegation on Kenya’s ongoing health sector reforms, particularly the Social Health Authority (SHA), Duale proposed the establishment of a Kenya–China Health Cooperation Taskforce to harmonise priorities, fast-track MoUs, and monitor progress. 

He also commended China’s ongoing support through technology firms like Huawei, which have been instrumental in equipping rural health facilities and training thousands of health workers.

On March 27, the government of China gave Kenya a Ksh1.8 billion grant to improve healthcare. A grant is a financial or in-kind contribution provided by one government to another without the expectation of repayment. Countries often use it as a tool to expand diplomatic relations.

The government announced that the funds would be directed towards the upgrading of key hospitals across the country, including Londiani Referral Hospital, Baringo County Referral Hospital, Kilifi Hospital, Misikhu Hospital, Bildad Kagia Hospital, and Kaimosi Farmers Training College.

China has been a strategic investment partner with the government. According to the 2025/26 Budget Estimates, China provided a Ksh9.4 billion loan to support the Finance Bill, with the funds allocated to the Ministries of Roads and ICT.

Treasury Cabinet Secretary John Mbadi with the Chinese Ambassador to Kenya, Guo Haiyan, signing the grant agreement on March 27, 2025.

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Treasury