In a landmark deal launched in November 2022, Sai Pharmaceuticals partnered with global hygiene leader Kimberly-Clark to manufacture Huggies diapers in Kenya. This collaboration marked a significant milestone for our company, representing our first venture into contract manufacturing and paving the way for future partnerships in this exciting sector. Through this strategic collaboration, we are proud to contract-manufacture Huggies diapers throughout Kenya and East Africa.
This initiative signifies our unwavering commitment and vision to providing high-quality and affordable hygiene products for the Kenyan market. The growing demand for baby diapers in the region necessitated this approach, as highlighted by Kevin Achieng, Kimberly-Clark's Business Development Director for the Middle East and Africa. He stated, "With over one million babies born in Kenya annually, and eight million across East Africa, the demand for high-quality and affordable hygiene products is undeniable."
During the launch, our CEO, Rajiv Joshi, emphasized the agreement's potential to position Kenya at the forefront of contract manufacturing in Africa, alongside established players like South Africa and Nigeria. He further underscored the importance of the partnership, stating, "The disruptions caused by COVID-19 to global supply chains highlighted the critical need for investing in local solutions to ensure a consistent supply of essential hygiene products."
The partnership garnered strong support from the Kenyan government. David Osiany, Cabinet Chief Administrative Secretary at the Ministry of Industrialization, Trade and Enterprise Development, recognized its potential to generate employment opportunities and promote knowledge transfer in hygiene product manufacturing. Osiany stated, "This collaboration brings us closer to achieving our national goal of elevating the manufacturing sector's contribution to GDP from 9% to 15%, a key pillar of the Government's Big Four Agenda."
The success of the Huggies contract manufacturing deal has paved the way for Sai Pharmaceuticals to expand our capabilities. This pioneering project has positioned us as a trusted partner for international hygiene brands, propelling us to the forefront of meeting the growing demand for locally manufactured hygiene products. This not only supports Kenya's healthcare sector but also caters to the rising demand for high-quality hygiene solutions across the region.
Sai Pharmaceuticals remains committed to delivering innovative and high-quality products while fostering growth and development within the Kenyan economy.
