China to build KSh9.84bn medical manufacturing plants in Kenya
3 min read
China through Zhende Limited plans to build two medical supplies manufacturing plants in Kenya
China through Zhende Limited plans to build two medical supplies manufacturing plants in Kenya.
A Chinese company called Zhende Limited, which produces medical equipment, intends to construct two facilities in Kenya with funds totaling Sh9.84 billion from the International Finance Corporation (IFC).
The company, which is listed on the Shanghai Stock Exchange, will manufacture and supply medical products, principally non-woven fabrics used in items like diapers, safety gear, face masks, hospital gowns, hats, and filtration materials, among others.
In the first phase, Zhende will occupy a four-hectare industrial site in the Tatu City Special Economic Zone.
“The company is planning to construct a medical supply manufacturing plant near Nairobi, Kenya. This facility will primarily produce medical supplies such as gowns, gauze, syringes, and other basic medical consumables for the region. The proposed IFC loan is of up to Sh9.84 billion ($70 million) equivalent,” said the IFC.
The project will be carried out in two phases; Phase I is anticipated to cost Sh8.4 billion ($60 million), and Phase II will be completed after the acquisition of land.
Zhende has received funding in the form of a $70 million loan from the World Bank through the IFC.
“The proposed investment consists of two senior loans up to $70 million equivalent in total to support Zhende to establish a medical supply manufacturing base (including phase I for surgical products and phase II for wound care products) near Nairobi, Kenya,” said the IFC.
The manufacturer expects to complete construction by December 2023.
“Based on current plans, Zhende expects to start construction on this site from June 2023 and complete it by December 2023. The plant will start production from January 2024 and employ 700+ employees upon launch with 80 percent being female,” said IFC.
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“For Phase II, the site is yet to be selected and Zhende is assessing several options. Once the site is selected, the construction for Phase II is proposed to start by November 2023 and finish by October 2024. The plant is expected to start production in November 2024 and employ 3,000 workers.”
A regional healthcare hub and pharmaceutical manufacturing hub are two goals that Kenya is working toward.
Due to the confidence and interest shown by the multinational organizations getting certification from the World Health Organization to manufacture for the worldwide market, the manufacturing capacity is anticipated to increase.
A deal between Moderna and the government to build Kenya’s first mRNA manufacturing plant, with the ability to produce up to 500 million doses of vaccine yearly, was also finalized.
With the ability to rapidly scale up production and respond to public health catastrophes on the continent and around the world, the new facility is anticipated to enable the development of vaccines for Kenya and Africa.
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