This archive report was first published on 6 December 2019.
Kenya's struggling economy has left many businesses reeling, but the pharmaceutical industry has found a glimmer of hope in Shelf Life, a subscription service that shields local pharmacies from risks.
Launched in Nigeria four years ago, Shelf Life has expanded to Kenya, where it acts as an intermediary between suppliers and local pharmacies, taking on the risks associated with the country's economic climate.
Working with Field Intelligence, a software company, Shelf Life conducts market research to determine which drugs to stock, minimizing losses. In an interview with Business Today, Field Intelligence CEO Michael Moreland noted, "The challenges that the Kenyan economy has had have made Shelf Life a really great entrant to the market because we take that risk off the entrepreneur. We are also investing new cash into the system and it stays in the system."
Shelf Life not only provides financing to pharmacies lacking funds to bring in new stock but also supplies the stock for free, allowing pharmacies to pay once they've sold the products. This interest-free financing model sets Shelf Life apart from traditional loans.
Before supporting any local pharmacy, Shelf Life assesses the legitimacy of the business and reviews the credit score of its directors or top executives.
With its advanced software, Shelf Life manages the supply chain, procurement, and logistics, taking on inventory risks and losses incurred due to expired products. Pharmacies that take in stock on credit only pay for the goods sold, and Shelf Life absorbs the risk of expired products.
While Shelf Life's innovative approach has shown promise, Field Intelligence CEO Michael Moreland believes it's unlikely to be replicated in other industries in Kenya in the near future.
