Kenya is set to enhance access to life-saving medical oxygen with the construction of a new Sh2.8 billion manufacturing plant in Kilifi County, aimed at slashing oxygen costs and bridging critical supply gaps in the region.

Construction is already underway at Kokotoni in Kilifi South, with a similar facility also being established in Tanzania, positioning Kenya among a handful of East African nations producing medical-grade oxygen locally.

The facility, operated by Synergy Gases Limited, is part of a broader regional initiative supported by the East Africa Program on Oxygen Access (EAPOA).

Once operational, it is expected to significantly increase oxygen availability, especially in public and private health institutions.

According to the World Health Organization (WHO), over 500 patients in low- and middle-income countries require oxygen therapy daily. Yet a regional report by EAPOA reveals that East Africa needs 7,000 tones of oxygen daily, while current production stands at just 750 tones.

To close that gap, Tanzania Oxygen Limited plans to produce at least 2,000 tones annually, covering nearly a third of regional demand.

The Kilifi project is being funded by the governments of Japan and Canada through MedAccess, Unitaid, and the Clinton Health Access Initiative (CHAI).

Once complete, the two plants will mark Africa’s first cross-border collaboration focused on improving oxygen access.

“We’re proud to be part of this transformative project,” said Paras Pandya, Managing Director of Synergy Gases Limited.

“Every cylinder produced will help save lives—whether it’s a newborn in distress, a mother in labor, a surgical patient, or someone with respiratory complications.”

Pandya added that the Kilifi plant will generate 3,000 direct and 1,000 indirect jobs, contributing to the local economy.

MedAccess CEO Michael Anderson said the organization was committed to financing sustainable solutions that increase access to oxygen, which remains scarce in many healthcare settings.

“Medical oxygen is a life-saving tool that is too often unavailable. Our financing model gives suppliers confidence to invest, knowing they can price oxygen affordably while maintaining supply,” Anderson explained.

Once operational, Synergy Gases will supply medical oxygen at or below a negotiated ceiling price. MedAccess has agreed to underwrite the risk by covering shortfalls if sales volumes drop below agreed targets.

The new plant will also produce industrial gases to serve sectors such as manufacturing, research, and laboratory services, further boosting Kenya’s industrial base.

The project aligns with EAPOA’s target to triple oxygen production in East Africa and reduce oxygen prices by up to 27%, easing the burden on healthcare systems and improving emergency response across the region.