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Moderna halts vaccine facility construction in Kenya

Covid-19 Vaccine. Photo: WHO.

By Hanifa Adan | 12 Apr 2024

Moderna disclosed that it hasn't received any vaccine orders for Africa since 2022, further revealing the cancellation of previous orders.

The American pharmaceutical company Moderna said on Thursday, April 11, that it has chosen to abandon its plan to build a plant in Kenya for the production of mRNA vaccines.

The decision comes in light of the diminishing demand for vaccines across Africa.

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The facility was to be the only such facility in Africa and Moderna's first outside the US.

Attributing the pause to the declining uptake of COVID-19 vaccines on the continent, Moderna stated that the current scenario does not provide adequate support for the proposed project.

"The demand in Africa for COVID-19 vaccines has declined since the pandemic and is insufficient to support the viability of the factory planned in Kenya," the company said in a statement.

Moderna disclosed that it hasn't received any vaccine orders for Africa since 2022, further revealing the cancellation of previous orders. These setbacks have led to losses and write-downs exceeding $1 billion (Sh130 trillion).

In March 2022, the company unveiled plans to invest $500 million (Sh65 billion) to construct a facility capable of manufacturing up to 500 million doses of mRNA vaccines annually.

"Despite these challenges, Moderna is committed to ensuring equitable access and meeting emerging demands from African nations for its COVID-19 vaccine through its global manufacturing network," the company said.

Moderna emphasised its ongoing efforts in vaccine development, particularly focusing on diseases prevalent in Africa, such as HIV and malaria. These investigational vaccines are currently in the early stages of development, showcasing the company's commitment to addressing critical healthcare needs in the region.

"Given this, and in alignment with our strategic planning, Moderna believes it is prudent to pause its efforts to build an mRNA manufacturing facility in Kenya," reads the statement in part.

The cancellation of Moderna's plans to build a facility in Kenya is part of its plans to cut costs associated with its COVID-19 vaccine production.

Kenya signed the deal to establish a Moderna mRNA vaccine facility in Kenya in 2023 with President William Ruto making the announcement.

"It is with pleasure that I announce the finalised deal between Moderna and the government of Kenya to build a Sh500 million dollar MRNA vaccine facility in Nairobi," Ruto said.

The upcoming facility was slated to concentrate on drug substance manufacturing tailored for the African continent and there were considerations for potential expansion to encompass filling and packaging functions at the same location.