How to Start a Pharmacy or Chemist Business in Kenya - difference

In Kenya, the terms pharmacy and chemist are often used interchangeably, but they differ in scope, regulations, and services. Starting either business requires an understanding of the regulatory environment, necessary qualifications, and operational steps. Here’s a combined guide to help you start a pharmacy or chemist business in Kenya.

1. Education and Qualifications

• Pharmacy: To run a pharmacy, you or a partner must be a qualified pharmacist with a degree in pharmacy and registered with the Pharmacy and Poisons Board (PPB). Pharmacists undergo extensive training and are licensed to dispense both prescription and over-the-counter (OTC) medications.
• Chemist: You can run a chemist without being a pharmacist, but you must employ a pharmaceutical technologist, who has a diploma in pharmaceutical technology and is registered with the PPB. Chemists usually sell OTC drugs and health products.

2. Business Plan

Develop a comprehensive business plan for both the pharmacy and chemist options:

• Scope of Services:
  • Pharmacy: Includes dispensing prescription drugs, offering consultations, vaccinations, and selling medical devices and wellness products.
  • Chemist: Focuses mainly on selling OTC medications, health supplements, and personal care products.
• Target Market:
  • Pharmacy: Urban areas with hospitals or clinics nearby.
  • Chemist: Residential neighborhoods, small towns, or rural areas where a smaller scale of business is more appropriate.
• Budget: Consider costs for renting a premise, stocking drugs, paying staff, licensing, and marketing.

3. Location and Premises

• Pharmacy: A strategic location is essential—ideally, near hospitals, clinics, or high-traffic commercial areas. Pharmacies require more space to store medications and provide consultations.
• Chemist: Chemists can be set up in smaller, easily accessible shops in residential areas, markets, or towns. These businesses have lower spatial requirements compared to pharmacies.

4. Licensing and Registration

• Pharmacy:

  • Pharmacy and Poisons Board (PPB) Registration: You must obtain a retail pharmacy license from PPB, and your premises will be inspected to ensure compliance with regulations.
  • County Business Permit: A business license from the local county government is mandatory.
  • Business Name Registration: Register your pharmacy with the Registrar of Companies.

• Chemist:

  • County Business Permit: Like a pharmacy, chemists require a trading license from the local county government.
  • PPB Certification: While less stringent than pharmacies, chemists still need PPB certification to sell medications legally.
  • Health Inspection: Ensure your premises pass county health inspections.

5. Stocking Your Business

• Pharmacy: Pharmacies typically offer a wider range of products, including prescription drugs, OTC medications, health supplements, medical devices, and wellness products. You must source drugs from PPB-approved wholesalers and suppliers.
• Chemist: Stock basic OTC drugs (painkillers, vitamins, cold medications), health supplements, first-aid products, and personal care items. Chemists may not stock prescription medications unless a licensed professional is present.

6. Hiring Staff

• Pharmacy: You need licensed pharmacists and pharmaceutical technologists on-site to dispense prescription drugs and offer consultations.
• Chemist: At least one pharmaceutical technologist is required to comply with health and safety regulations. Support staff can help manage sales and inventory.

7. Marketing and Promotion

• Pharmacy:
  • Create a website for online presence, offering delivery services if possible.
  • Partner with nearby hospitals or clinics to refer customers.
  • Use digital marketing, local advertising, and offer loyalty programs.
• Chemist:
  • Focus on local marketing with flyers, posters, and promotions like discounts on popular products.
  • Build a good reputation in the community for accessibility and reliability.

Summary of Key Steps

Final Thoughts

Starting a pharmacy or chemist in Kenya requires compliance with the Pharmacy and Poisons Board (PPB), selecting the right location, and ensuring you have the necessary licenses. Pharmacies demand a higher level of professional qualifications and offer broader services, while chemists have fewer regulations but focus mainly on OTC products. Both require careful planning, staff management, and strategic marketing to succeed in the Kenyan market.