Inside Kenya’s $100 Million+ Battle Against Counterfeit Medicines – and How Blockchain Could Help

Kenya continues to face a serious challenge with substandard and counterfeit medicines – even though it boasts a strong pharmaceutical sector and established regulatory frameworks.

Licensed yet poor-quality drugs are classified as “substandard,” while “counterfeits” are those that are deliberately mislabeled or misrepresented.

A study from Bahir Dar University in Ethiopia found that Kenya leads in the prevalence of fake and unregistered antibiotics and antimalarials, with 17% of samples falling into those categories. This figure highlights a major public health threat: amoxicillin – a staple antibiotic – was among the most frequently counterfeited.

Kenya’s continued high infection rates have spurred demand for antibiotics and antimalarials, providing fertile ground for counterfeiters. Common treatments such as artemisinin-based combination therapies and chloroquine are essential but often compromised by fake versions.

The World Health Organization warns that counterfeit drugs – found in one out of every ten medicines in low-and middle-income countries – pose grave health risks, leading to treatment failure, drug resistance, and loss of trust in healthcare systems. A 2018 Pharmacy and Poisons Board (PPB) survey reinforced this, finding that 12% of drugs in Kenya were fake or fraudulent.

Industry estimates suggest counterfeit medicines may make up as much as 30% of the market, with a black-market value of roughly KES 15 billion (~$115 million). Weak regulation, porous borders, free-trade zone exporters, and high profit margins fuel the problem, along with limited regional collaboration and poor consumer awareness.

In response, the PPB has stepped up regulation. A 2024 MoU with the Anti-Counterfeit Authority (ACA) strengthens joint efforts against fake medicines. Nairobi has seen closures of unlicensed pharmacies and arrests of fake pharmacists as part of sector cleanup operations.

Innovations are playing a key role: the PPB has deployed “PillScan,” a near-infrared (NIR) scanner used to detect substandard and counterfeit drugs. They’ve also launched Kenya’s first Pharmacovigilance Electronic Reporting System (PV-ERS), enabling consumers and healthcare workers to report adverse reactions and suspected poor-quality products digitally.

How Blockchain Can Strengthen the Fight

Beyond these efforts, blockchain technology is emerging as a trusted tool in the global fight against counterfeit drugs – and could offer Kenya a powerful new layer of security.

In India, the government mandated a drug serialization and traceability system using blockchain for its pharmaceutical exports to ensure transparency across the supply chain. Similarly, Nigeria has piloted blockchain-powered verification systems in partnership with private firms like Chekkit, which allows consumers to verify the authenticity of medicines via QR codes linked to tamper-proof blockchain records.

In Rwanda, blockchain is being used to track the distribution of medical supplies, ensuring that only approved parties can handle sensitive or high-value drugs – significantly reducing fraud and theft.

Applied locally, blockchain can support Kenya by:

• Creating tamper-proof records: From manufacturing to retail, every step of a drug’s journey can be logged on an immutable ledger, making it difficult for counterfeiters to insert fake products unnoticed.
• Empowering consumers: Simple mobile apps could allow patients to scan medicine packaging and verify authenticity instantly.
• Supporting regulators: Blockchain would enable real-time audits and alerts when supply chains are breached or suspicious inventory appears.

Pharmacist, Joseph Okidi, advises consumers to watch for telltale signs of fake drugs:

• Inconsistent packaging
• Poor print quality
• Missing QR codes or
• Serial numbers, and
• Unusually low prices

Integrating blockchain could turn QR codes and serialization into robust security measures rather than surface-level checks.

With counterfeit drugs affecting not just health but also Kenya’s economy – through revenue loss and higher healthcare costs – the combined efforts of regulation, technology, and public vigilance are critical. Blockchain, already gaining traction in other emerging markets, could be the missing link in creating a pharmaceutical supply chain that is both transparent and tamper-proof.

Stay tuned to BitKE for deeper insights into the Kenyan and African blockchain space.

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