The healthcare industry in the East African Community
The healthcare sector in the East African Community (EAC) is changing rapidly. A fast-growing population, rising disposable incomes and increasing demand for specialised medical services are driving modernisation.
Developing healthcare systems for both busy urban centres and remote rural communities with limited access to care presents particular challenges. The Swedish–East African Chamber of Commerce (SWEACC) helps businesses understand and navigate the EAC healthcare market.
Key facts about the EAC healthcare industry
Generic medicines: The East African market for generic medicines reached USD 2.6 billion, with a projected compound annual growth rate (CAGR) of 6.45%. The wider EAC pharmaceutical market is estimated at USD 4–5 billion.
The EAC economies together represent an import market for pharmaceuticals and medical equipment worth USD 1.6–1.8 billion.
Exports: Intra-regional and external healthcare exports together account for less than 10% of the region’s total pharmaceutical market value.
The EAC is developing as a centre for healthcare investment, with a population projected to reach 640 million by 2050 and a growing middle class seeking advanced medical care. Harmonising regional regulations reduces cross-border barriers and helps private hospital networks, medical device suppliers and digital health platforms expand across the region.
With a continent-wide healthcare financing gap of USD 245 billion, there are long-term opportunities in areas such as local pharmaceutical manufacturing, aimed at reducing the region’s 70% import dependency. Mobile-based health insurance and public initiatives for universal health coverage can strengthen demand and combine commercial returns with positive social impact.
The EAC healthcare market by sector
In early 2026, the EAC healthcare sector is expanding, with the market expected to grow from USD 8 billion to approximately USD 15 billion over the next decade. The following overview describes the economic conditions in each sector.
Digital health and health technology
In 2026, mobile penetration above 80% is supporting services such as drone deliveries and mobile-based insurance. The sector is moving from pilot projects towards a central role in healthcare delivery, with growing interest in AI-driven diagnostics, remote patient monitoring and online consultations.
Pharmaceuticals and medical manufacturing
The EAC is increasing local production to reduce its 70–80% dependency on imported generic medicines. The EU–EAC Market Access Upgrade Programme (MARKUP II) supports harmonised regulations and regional trade routes. The supplied material projects a market value of USD 29 billion by 2030.
Hospital infrastructure and private healthcare
Growing demand for treatment of chronic diseases is driving modernisation through private equity investment and public–private partnerships (PPPs). This expansion creates opportunities for foreign businesses in medical logistics and improvements to clinical facilities.
Public health and community healthcare
Implementation of the EAC Health Sector Plan (2024–2030) supports regional health security. The supplied material states that Kenya’s National Hospital Insurance Fund (NHIF) increased its funds by more than 930 million by 2025, as an example of progress towards universal health coverage (UHC). Interested in these areas? Contact SWEACC for support in establishing and developing your business in the EAC healthcare market.
