Moderna puts Kenya plant plans on hold

US pharmaceutical and biotechnology firm Moderna has suspended its efforts to build an mRNA manufacturing facility in Kenya, the firm said in a statement Thursday (Apr. 11).

The company said that "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."

According to the statement, Moderna has not received any vaccine orders for the continent since 2022 and has faced the cancellation of previous orders, resulting in more than $1 billion in losses and write-downs.

Moderna believes the pause will allow the company to better align its infrastructure investments with the evolving healthcare needs and vaccine demand in Africa.

In March 2022, then Kenyan president Uhuru Kenyatta oversaw the signing of the memorandum of understanding between the east African nation and the US firm.

At the time, the company aimed to produce up to 500 million doses of vaccines a year for Africa, with a focus on drug substance manufacturing.