This document discusses the business opportunity in Kenya for diabetes equipment. It notes that the East African region has a population of around 250 million people across 6 countries. The rates of urbanization and lifestyle diseases like diabetes are increasing as incomes rise in the growing middle class. There is a need for modern diabetes equipment and technologies, as products are currently imported but not locally manufactured. Finnish companies that produce screening, diagnostic, treatment and monitoring equipment would find opportunities in the private and public healthcare sectors of Kenya and the broader East African market.

1. Business Opportunity in Kenya:
Diabetes equipment
Esa Rantanen
Auri Evokari
20.7.2015

2. The East-African Market
• The East-African market is comprised of 6
countries:
– Kenya
– Ethiopia
– Tanzania
– Uganda
– Rwanda
– Burundi
• with a combined population of close to 250
million people*
• The rising middle class in Eastern Africa is
urban and young
– Urbanization rates vary between 20 and 25%
– Lifestyle diseases within this population are
increasing
– Income levels in the urban population are
rising
• Amount of non-communicable diseases, such as
diabetes, caused by sedentary lifestyles are rising
20/07/20152 © Finpro
TANZANIA
BURUDI
ETHIOPIA
UGANDA
KENYA
RWAN
DA
Eastern Africa
*estimation in July 2014

3. Market Opportunity
• There is an increasing concern regarding health matters and there has been a strong growth in Kenyan’s health
spending, which is shown in the amount of increasing uptake of insurance policies and the rising amount of
private clinics. This provides access to modern health care for a growing population and leads to interesting
business opportunities for manufacturers of medical appliances
• Any company manufacturing and designing modern equipment for treating diabetes will find opportunies in East-
Africa. This opportunity is suitable for companies manufacturing and selling equipment relating to the care of
diabetes, for example for:
• Diabetes screening and diagnostics,
• Diabetes treatment and medication (Blood-sugar monitoring devices, especially any mobile applications)
• Especially companies producing self-monitoring devices will have an advantage all over the country.
• Products in the Kenyan markets are not locally manufactured, but are imported from countries like Switzerland,
USA, Taiwan and Germany.
• A pack of 50 blood glucose testing strips costs Sh1,800, ie. 18,40 €.
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4. Statistics on diabetes in East-Africa compared
with Finland in 2013
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4,56
9
4,89 5,01 4,84
5,78
0
2
4
6
8
10
Kenya Tanzania Ethiopia Rwanda Uganda Finland
Comparative prevalence (%) in 2013
97,3
215,6
80,6
102,3
142,1
73,4
0
50
100
150
200
250
Kenya Tanzania Ethiopia Rwanda Uganda Finland
Mortality rate in 2013 (x 100 000 pop.)
749
1707
1852
234
635
349
0
500
1000
1500
2000
Kenya Tanzania Ethiopia Rwanda Uganda Finland
Known diabetes cases in 2013 (ages 20-79), in 1000s
20350
47144
34262
5464
21461
2898
0
10000
20000
30000
40000
50000
Kenya Tanzania Ethiopia Rwanda Uganda Finland
Known diabetes related deaths in 2013 (ages 20-79)
Source: IDF Diabetes Atlas, Sixth Edition, 2013

5. The Future Development of Diabetes
in Africa
• The total amounts of deaths caused by diabetes
is estimated to rise by more than 50 % in the
next 10 years.
• 90 % of the diagnosed cases are Type II
diabetes but majority of cases are undiagnosed:
it’s estimated that for every one diagnosed
patient there are two undiagnosed cases in
Kenya
• Especially the figures among children and
young people ages 8-18 are rising
• According to the Economist Intelligent Unit
(2011), obesity and heart disease are expected
to be the biggest health challenges by 2030.
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• The problem is not only East-African, as the amount
of diabetes cases all over Africa is growing*
*Source: IDF Diabetes Atlas, Sixth Edition, 2014

6. Healthcare in Kenya:
Private clinics
• Kenya is the healthcare hub of East Africa with the
most sophisticated and extensive healthcare
services in East-Africa and quality services in Kenya
are attracting patients from neighboring East
African countries
• However, there are shortages in accessible public
healthcare which are compensated by the growth
in private health care clinics
• Private health care providers like Nairobi Hospital
and Aga Khan University are opening satellite clinics
all over Kenya and both the public and private
sector institutions are making use of new
technology to improve processes and service
delivery
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• Pressured by the increasing demand of affordable
healthcare, the Kenyan government has launched a
healthcare program in February 2015 that provides
every Kenyan county with two hospitals each.
• Due to a shortage in qualified personnel and long
distances within the country, any mobile solutions
and an internet interface on the equipment used is
an asset
• There are 32,2 million mobile subscribers in Kenya
(06/2014) and mobile penetration is 79,2 %. The
amount of data/internet subscribers reached 14
million in 2014. The dominating mobile operator in
Kenya is Safaricom with an almost 70 % market
share.

7. Finnish Offering
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Screening
Mobile applications, online surveys
Diagnostic
Laboratory equipment, other technologies
Lifestyle Intervention
Education, awareness about healthy
lifestyle options, mobile
applications, campaigns
Treatment
Medications, monitoring
equipment
Collaboration
Mobile operators,
Health insurance
companies, private
hospitals and clinics
Population
Middle-class and customers using high-end
healthcare services