MedSource is Kenya’s first Group Purchasing Organization for medicines, medical supplies, and other health commodities. MedSource’s goal is to improve the availability of affordable quality medicines and other health products for people in Kenya and other African countries.

A GPO is an organization that leverages the combined purchasing power of a group of businesses to obtain discounts from suppliers based on the aggregated volume of its membership.

As a GPO, MedSource will improve access to affordable, quality medicines and laboratory and other health commodities for the population at large and provide capacity building services for pharmacies, clinics, and hospitals.

MedSource’s contract pricing, particularly for fast moving commodities, provides opportunities to reduce consumer prices while maintaining the same margin. Proper use of credit that is available to eligible members combined with lower prices for quality medicines can provide a competitive advantage to help grow your business.

MedSource does not procure or distribute any medicines or other health products. Through its platform, MedSource makes available a catalogue of prenegotiated medicines and other health commodities that our members can buy from our panel of distributors.

Membership is open to pharmacies, clinics, and hospitals (ranging from small retail shops to large hospitals); facilities must be fully licensed by the Pharmacy and Poisons Board and other relevant regulatory authorities.

Interested members can join MedSource through the MedSource sign-up page on the website, directly by contacting MedSource staff at, or through their professional associations.

In addition to leveraging combined purchasing power based on the aggregated volume of its membership, MedSource will work with distributors and members to ensure the availability of quality products; facilitate training on business skills, pharmacy practices, and inventory management; work with financial partners to provide credit guarantees and drive access to credit for financing business set-up, stock purchases, and business expansion; provide simple IT solutions (data collection at the outlet and corporate office levels); and improve the integration and trackability of transactions.

Yes, there is a nominal annual membership fee of Ksh.5000 (Kenya Shillings). However, this fee has been waived for 2019.

No. MedSource does not interfere with existing relationships between members and suppliers. The company aims to provide an environment for its members that promotes access to quality, affordable medicines through negotiated prices from distributors, importers, and manufacturers. Through capacity building, MedSource will support members to streamline their businesses, promote efficiencies, and improve accountability and use of data for decision making.

MedSource started operations in Kenya and is planning to expand to other African countries within the next few years.

Medical practices are faced with rising costs on many fronts, accompanied by stagnant or declining reimbursements, so every cent saved is important. The purchasing power of MedSource enables its members to get pricing and terms that individual practices may not receive. MedSource also saves its members the time and money needed to select suppliers and products.

Joining MedSource helps your business benefit from lower total purchasing costs. A MedSource member is assured of high-quality medical supplies courtesy of its approved catalogue of products from manufacturers and distributors. This ultimately translates to better retention of customers through competitively priced and high-quality products.

Manufacturers who work with MedSource will have access to all of the pharmacies and retailers that are MedSource members.

By making more purchases through MedSource’s online platform (Enterprise Resource Planning system), a MedSource member is assured of larger discounts from MedSource’ network of manufacturers and distributors.

By participating in other activities implemented by MedSource, members are able to improve their overall business and operate profitably.

Due to time and staff limitations, most institutions negotiate pricing by soliciting prices from a few suppliers for their daily, monthly, or possibly longer term volume of purchases. They typically do not know all the prices available and believe they are receiving the best price.

MedSource has member data (aggregated volume and pricing) and its own market intelligence based on local, regional, and international data to analyze pricing and leverage that information to obtain substantial discounts. MedSource thus saves its members money and time.

The key to success for MedSource and its members in obtaining savings is the leverage of their combined purchasing volume. This is done through a bid/proposal process and involves numerous components, including questionnaires, price sheets, product evaluations, and additional negotiations before a contract is awarded.

Remember, because we provide a high purchase volume to our contracted suppliers, they are able to reduce margins while maintaining a profitable program. If you hold local price negotiations, that market share is not present and therefore, the long-term viability of the pricing for the supplier is not established. In other words, you may be able to obtain a lower price in the short term, but to maximize savings for all members over the long term, our contracted supplier is most likely the best option.

The MedSource program includes exclusive and committed participation and purchases from its members. This means suppliers can expect to gain market share when they are able to provide MedSource with the most competitive pricing. This approach provides increased volume to suppliers that are willing to offer the greatest savings.

Membership in our program includes confidentiality; therefore, your existing suppliers should not be provided with our contract pricing in an effort to “meet or beat” our pricing. (It is not unusual that suppliers, in fear of losing business, are anxious to lower pricing when that business is threatened rather than having given you better pricing all along.)

High compliance from our membership with purchasing MedSource products and services is needed for MedSource to continue offering additional products and hopefully larger discounts.

Once your membership has been processed, you will receive a notification to access the MedSource ERP that has a listing of products, prices, and suppliers and information on how to access discounts. You also will receive access to a MedSource membership consultant who can be contacted via e-mail or phone to discuss any particular concerns and/or suggestions you may have.