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Moderna, a biotechnology company headquartered in Cambridge, Massachusetts, has announced the suspension of its plans to construct a vaccine manufacturing facility in Kenya.

The decision follows a significant decline in demand for its Covid-19 vaccines, particularly in the African continent.

The company reported that it has not received any vaccine orders for Africa since 2022, resulting in losses exceeding $1 billion and subsequent write-downs related to canceled orders from the region.

Consequently, the proposed investment of Sh60 billion for the construction of the vaccine plant in Kenya has been put on hold.

Originally perceived as an affirmation of America's confidence in Kenya's investment climate and its people, the proposed plant was intended to have an annual capacity of manufacturing 500 million vaccine doses.

Moderna had also indicated its intention to supply vaccines to the global South or the developing world, emphasizing its commitment to global health equity.

The decision reflects Moderna's broader strategy to optimize operations and reduce costs amidst declining demand for Covid-19 vaccines globally.

Last year witnessed a significant downturn in the company's fortunes as global reliance on Covid vaccines decreased with evolving pandemic dynamics.

Moderna's CEO, Stephane Bancel, reiterated the company's dedication to promoting global health equity. However, with insufficient demand in Africa to sustain the viability of the proposed factory in Kenya, Moderna has chosen to reassess its plans.

The company remains committed to equitable vaccine access and addressing emerging demands in African nations through its global manufacturing network.

Despite the suspension of plans for the Kenya facility, Moderna continues its efforts to develop vaccines for diseases disproportionately affecting the African continent, such as HIV and malaria. These endeavors are still in the early stages of development.

In light of these considerations and in alignment with its strategic objectives, Moderna has deemed it prudent to pause efforts to build an mRNA manufacturing facility in Kenya.

This approach will enable Moderna to realign its infrastructure investments with evolving healthcare needs and vaccine demand in Africa.

The announcement underscores the challenges faced in ensuring equitable access to life-saving vaccines globally, particularly in regions with diverse healthcare needs like Africa.