MEDS Strategic Plan 2013-2017

Description
MEDS Strategic Plan 2013-2017

MEDS l STRATEGIC PLAN 2013-2017 a
Enhancing capacity for a growth strategy
Mission for Essential
Drugs and Supplies
D E C 2 0 1 2
Strategic Plan 2013-2017
b ENHANCING CAPACITY FOR A GROWTH STRATEGY
Quality Policy Statement
The Board and top management of Mission for Essential Drugs and Supplies (MEDS) are committed to provision
of reliable, quality and afordable essential medicines, medical supplies, capacity building, quality control
laboratory and other pharmaceutical services that consistently meet customers’ needs and expectations.
MEDS management is committed to make the quality policy a priority in all the organisation’s processes and
to have it reviewed as appropriate for continual suitability to MEDS vision and purpose of existence.
This shall be achieved through:
l Identifying and complying with requirements of MEDS customers
l Complying with requirements of the quality management system based on ISO 9001:2008 Standards
as well as relevant statutory and regulatory requirements
l Engaging in quality assurance and control activities for the products that MEDS supplies to customers
l Documented and regularly reviewed quality objectives
l Developing mutually benefcial relationships with suppliers and partnering with them in the continual
improvement of the quality of their products and services
l Partnering with organizations having similar or compatible objectives in order to achieve higher
customer satisfaction
Quality is the responsibility of all MEDS staf. This quality policy is communicated to all employees and they
are already aware of the importance of their activities and how they relate to the overall achievement of the
Organization’s quality objectives.
MEDS l STRATEGIC PLAN 2013-2017 i
Contents
List of Abbreviations ii
Foreword iii
Acknowledgement iv
Executive Summary v
Chapter 1: BACKGROUND INFORMATION 1
1.1 Origin of MEDS 1
1.2 Governance and Organization Structure 2
1.3 Achievements realized during the 2008-2012 Strategic Plan 2
1.4 Key Success Factors 6
1.5 Strategic Planning process 7
1.6 Lessons learnt 7
Chapter 2: STRATEGIC DIRECTION 8
2.1 Corporate Identity 8
2.2 Vision 8
2.3 Mission Statement 8
2.4 Core Values 8
2.5 Core Functions 8
Chapter 3: STRATEGIC ANALYSIS 9
3.1 External (PESTEL) Analysis 9
3.2 SWOT Analysis 10
3.3 Stakeholder Analysis 11
Chapter 4: STRATEGIC ISSUES, OBJECTIVES AND STRATEGIES 13
4.1 Strategic Issues 13
4.2 Strategic Choices and Thrusts 13
4.3 Strategic Objectives 14
Chapter 5: STRATEGY IMPLEMENTATION 16
5.1 Strategy Implementation 16
5.2 Resource Implications and Mobilization 16
5.3 Risk Analysis and Critical Assumptions 16
5.4 Strategy Control, Monitoring and Evaluation 16
ANNEXES 17
Annex 1: The Origin of MEDS 17
Annex 2: MEDS Organization Structure 18
ii ENHANCING CAPACITY FOR A GROWTH STRATEGY
List of Abbreviations
BOD Board of Directors
BOT Board of Trustees
CDF Constituency Development Fund
CHAK Christian Health Association of Kenya
CMP Common Market Protocol
COMESA Common Market for Eastern and Southern Africa
CPD Continuous Professional Development
CRM Customer Relationship Management
DIT Directorate of Industrial Training
EAC East African Community
FBO Faith Based Organisation
FDA Food and Drug Authority
GOK Government of Kenya
HR Human Resources
HRD Human Resource Development
ICT Information, Communication and Technology
ISO International Organisation for Standardisation
KEC Kenya Episcopal Conference
KEMSA Kenya Medical Supplies Agency
KMTC Kenya Medical Training College
KRA Kenya Revenue Authority
M & E Monitoring and Evaluation
MC Management Committee
MDGs Millennium Development Goals
MDR/XDR-TB Multi-Drug/Extensively Drug Resistant – Tuberculosis
MEDS Mission for Essential Drugs and Supplies
MOH Ministry of Health
NGO Non-Governmental Organisation
NHIF National Hospital Insurance Fund
NQCL National Quality Control Laboratory
PESTEL Political, Economic, Socio-cultural, Technological, Ecological, Legal
PPB Pharmacy and Poisons Board
QC Quality Control
RFP Request for Proposal
SWOT Strengths, Weaknesses, Opportunities and Threats
USAID United States Agency for International Development
WHO World Health Organization
MEDS l STRATEGIC PLAN 2013-2017 iii
Foreword
T
his Strategic Plan covers the period January 2013 to December 2017 during the
time when the country, with its possible challenges, will be implementing the
dual governance structures of National and County Governments. It therefore,
behoves MEDS leadership to leverage organizational strengths to skilfully navigate
the organisation to tap the available market opportunities and to sustain the
gains realised during the preceding period. With the theme: “Enhancing Capacity
for a Growth Strategy”, and a vision of becoming a world class faith based medical
supply chain and capacity building organization, MEDS aims at leveraging the best
practices in operations to maintain its competitive advantage in the health sector in
Kenya and the Sub-Saharan region.
The Plan conveys MEDS shared vision, mission statement, core values, objectives, strategies,
activities and organizational structure for the period 2013 to 2017. The implementation of
this plan anticipates new innovations, capacity building, market expansion and penetration
supported by a dynamic organizational culture. The objectives and strategies set out in this
plan aim at investing in MEDS activities that will lead to organizational prominence in fve
critical areas namely: strengthening internal business processes; enhancing fnancial growth;
embracing change for growth and remaining a learning organisation; increasing customer
satisfaction, and preserving a positive corporate image.
This Strategic Plan was formulated after a thorough internal assessment of the existing capacity
against the demand to efectively deliver services to a larger clientele. It fully recognizes the
need to respond to local unmet customer needs and expectations even as the organization
penetrates into new markets beyond Kenyan borders. It is vital to stress that MEDS recognises
the enormous opportunities that exist in the domestic, regional and Sub-Saharan markets
which should be fully exploited through the implementation of this growth strategy, coupled
with aggressive marketing in line with the agreed strategic direction and guided by MEDS
corporate identity.
MEDS appreciates the eforts, time and resources from the Board of Directors, Partners,
Customers and Staf who were actively involved in the preparation of this strategy document.
The Board is committed towards full realization of the strategic objectives outlined in this
Strategic Plan. It is indeed a collective undertaking to re-dedicate ourselves to the important
task of successfully implementing this plan.
Finally, MEDS will continue engaging all the stakeholders during implementation of this growth
strategy as the organisation pursues strategies and activities outlined in the subsequent pages,
just as their views were sought during the formulation stage. With the assured commitment of
MEDS Management and staf, we are confdent that this plan will be successfully implemented
for we have faith that with God on our side, the challenges are surmountable.
Rt. Rev. Michael Sande
Chairman, Board of Trustees/Directors
MEDS will
continue
engaging all the
stakeholders
during
implementation
of this growth
strategy as the
organisation
pursues
strategies
and activities
outlined in the
subsequent
pages, just as
their views were
sought during
the formulation
stage.
iv ENHANCING CAPACITY FOR A GROWTH STRATEGY
S
uccessful completion of this strategic planning assignment was as a result of
critical input and participation of various MEDS stakeholders, namely: Board
of Directors, CHAK and KEC Secretariats, Customers, Suppliers, Transporters,
Development Partners, and Government Institutions. We would like to thank all
who freely gave their contributions and made recommendations on the areas that
required improvements. I extend my special appreciation to MEDS staf for their
dedication, contributions and commitment in ensuring completion of this Strategic
Plan (2013-2017).
While it is not possible to mention everyone who contributed to this strategy formulation,
MEDS would like to extend many thanks to all those who unreservedly ofered information
relevant for the preparation of this Plan. I wish to convey very special thanks to the various
people who took time of from their busy schedules to provide relevant information during
feld visits and interviews, completing the circulated questionnaires and participating during
the planning and validation workshops. Without their contribution, this task would have
been difcult, if not impossible.
I believe as we develop a strong management team and strengthen our human resource
capacity, the strategies, management processes and systems outlined in this strategic
plan will be implemented efectively as we focus on making the organization a world class
supplier of quality medicines. Finally, I wish to thank Onkunya and Associates for facilitating
the strategy development process and their individual contribution and commitment to this
exercise.
It is MEDS commitment to journey with its customers and other stakeholders in the task
of implementing the strategies outlined in this plan. To all our stakeholders: receive God’s
blessings and guidance as we continue engaging in synergetic partnerships for greater
impact.
Paschal Manyuru
Managing Director
Acknowledgement
I believe as we
develop a strong
management
team and
strengthen our
human resource
capacity, the
strategies,
management
processes and
systems outlined
in this strategic
plan will be
implemented
efectively as we
focus on making
the organization
a world class
supplier
of quality
medicines.
MEDS l STRATEGIC PLAN 2013-2017 v
P
roviding treatment is essential to alleviate health
sufering and to mitigate the impact of disease on
human beings, especially in the third world countries
where the cost of treatment for any ailment is high. One of
the pillars the Kenya Government adopted at independence
was to fght disease, which MEDS has translated into various
strategies since its inception in 1986, through the provision
of essential medicines, medical supplies, capacity building,
quality control laboratory and other pharmaceutical services,
guided by Professional and Christian values. MEDS has faced
great challenges but managed to maintain sustainable
fnancing for medical procurement and distribution. The
organisation has also carried out training for healthcare
workers and educated communities and diverse stakeholders
on medical and health issues.
MEDS organizational structure consists of three leadership
levels: the Board of Trustees, the Board of Directors, and the
Management Committee. The Managing Director is the link
between the Board of Directors and the organisation’s day
to day operations. The Management Committee consists
of three Heads of Department (Operations, Finance, and
Customer Services), with the Managing Director providing
leadership and guidance to the Committee and the entire
staf.
Currently, the government-owned supply agency (KEMSA)
has been undergoing a process of restructuring and capacity
improvement. Hence the management of MEDS in the
strategic plan for 2013-2017 will endeavour to implement
strategies that will complement government eforts in the
Kenyan market. This will ensure that MEDS continues to
enjoy a dominant role in providing a range of medicines and
medical supplies to church-based health facilities. In addition,
because of its reputation and long working relationship
with suppliers, MEDS will be able to ofer competitive prices
comparable to those of international procuring agencies.
Against this background, this Strategic Plan will pursue the
following Strategic thrusts:
1. Market Penetration to Sub-Saharan African region:
Over the last 27 years, MEDS has been steadily growing its
sales within the church health facilities, Non-governmental
Organisations and a few government-owned health facilities.
Bulk of the clientele catchment has mainly remained within
Kenya boarders. The implementation of the 2010 Constitution,
which will lead to devolved government operations through
counties, has been integrated in the strategic plan for 2013-
2017 and it is envisaged that MEDS will build on the fnancial
base developed over the years to sustain its growth in the
Kenyan medical supplies market and within Drug Supply
Organisations in the larger East and Central African market
and the Sub-Saharan region as a whole.
2. Deliberate aggressive marketing of MEDS as a brand:
MEDS was set up as a revolving drug fund with initial funding
mainly from church donors abroad. MEDS has complete
autonomy and does not rely on outside funding for its
supply chain function. At least 40% of the health services in
Kenya are provided by church health facilities, which have
received no subsidies from the government since 1998,
although some have benefted from seconded staf from
government institutions. In developing the strategic plan
2013-2017, views of all the stakeholders for MEDS were taken
into consideration. From the analysis done on the position of
MEDS in the medical supplies industry, a growth strategy for
the period 2013-2017 was adopted and will be supported by
initiatives such as products branding, aggressive marketing
for market expansion within existing clientele, market
penetration into new markets and increased participation in
health forums to increase MEDS visibility. This strategy will
enhance the operations of MEDS, providing a reliable supply
of essential medicines and medical supplies of good quality
at afordable prices.
3. Sustainability of the Capacity Building (training)
function: The programme for training and supporting client
health facilities which started in 1987 has been given more
emphasis in the current strategic plan, especially after the
withdrawal of donor support towards training during the
ended plan (2008-2012). MEDS training involves residential
seminars, facility-based training and, recently, consultancy
services, for all cadres of health care workers. Courses are
ofered every year for all levels of hospital staf, ranging from
board members, administrators and in-charges, matrons,
programme coordinators, and store managers to patient
attendants, among others. In line with MEDS growth strategy,
the traditional training function will be enhanced into a
Executive Summary
vi ENHANCING CAPACITY FOR A GROWTH STRATEGY
capacity building role in all aspects of health services and
general management including rational use of medicines
through consultancy services, facility based interventions
and on-the-job interventions. A critical component of
the envisaged capacity building will be the continuous
identifcation of needs to inform new programmes and
impact assessment of interventions.
4. Sustainability of the Quality Control Laboratory:
MEDS has a functioning Quality Assurance system which
guarantees that its stocks meet international quality
standards. Regular visits are made to manufacturing plants
of local suppliers in order to verify adherence to good
manufacturing practices. Furthermore, customer feedback
is routinely sought. Stored products are randomly sampled
for routine quality analysis to verify their quality status. The
strategic plan 2013-2017 has developed strategies that will
lead to the maximum utilization of the WHO pre-qualifed
QC Laboratory to ensure that product quality is maintained
and the operations of the laboratory are fnancially self
sustaining.
5. Business Process Re-engineering and Supporting
structures: It is envisaged that by December 2017 MEDS
will have achieved the desired growth in all the areas of its
operations. This can only be achieved through improved
efciency and efectiveness in MEDS operations. The
planned business process re-engineering and supporting
structures will deliver success and improved performance in
all the focus areas. Monitoring and evaluation of the strategic
plan through performance indicators developed in the
implementation matrix will enable the organization to assess
the efectiveness of the strategic objectives in delivering
desired results and the impact on the stakeholders.
This Strategic Plan document has fve (5) parts outlined as:
1. Background Information
2. Strategic Direction
3. Strategic Analysis
4. Strategic Issues, Strategic Objectives and Initiatives
5. Strategy Implementation
MEDS l STRATEGIC PLAN 2013-2017 1
Chapter 1: BACKGROUND INFORMATION
1.1 ORIGIN OF MEDS
I
n mid 1980s, the Government of Kenya adopted the
World Health Organisation’s model Essential Medicine List
for the National Essential Drugs Concept as a means of
ensuring access to cost efective medicines by the majority
of the country’s population. With time, the government
reduced its budgetary allocation for healthcare provision
thus locking out the church health facilities from obtaining
their medicines and medical supplies from the Central
Medical Stores (currently Kenya Medical Supplies Agency
– KEMSA). The initiative of starting a joint Christian supply
chain organisation was as a result of the adverse conditions
within which the church health facilities operated in the
procurement of drugs and medical supplies. The increasing
cost of drugs, the amount of time and money spent by the
individual health facility in coming to Nairobi to purchase
or collect drugs was no longer supporting the facilities in
achieving their objective of providing health services to the
poor and marginalised at afordable cost. See Annex 1 for
more details.
Mission for Essential Drugs and Supplies (MEDS) is a
Christian not-for-proft organization based in Nairobi. It is a
registered trust of the Kenya Episcopal Conference (KEC) and
the Christian Health Association of Kenya (CHAK). MEDS was
founded in 1986 as an ecumenical partnership of the two
church secretariats to improve accessibility to quality health
care through their respective afliated health facilities.
Kenya Episcopal Conference (KEC) fulfls its health
mission through the Catholic Health Commission, which
was established in 1957 as a department of the Kenya
Catholic Secretariat to coordinate mission health facilities.
KEC constituted the Commission to help fulfl its mandate
with particular reference to the healing ministry of Christ. The
Commission coordinates several health facilities comprising:
Hospitals, Health Centres, Dispensaries, Mobile Clinics,
Community Based Health Programmes, Nurse–Training
Colleges, and Clinical Medicine Colleges.
Christian Health Association of Kenya (CHAK) was
established in the 1930s as a Hospitals’ Committee of the
National Council of Churches of Kenya (NCCK). It became
an autonomous body in 1946 and was named Protestant
Churches Medical Association (PCMA). Initially, its main
role was to receive and distribute government grants to
Protestant church health facilities. In 1982, the Association
changed its name to CHAK with a broader mandate of
facilitating the role of the Church in health care. The purpose
of CHAK is to facilitate and build capacity in member health
units to enable them to deliver accessible, quality health
services to Kenyans in accordance to Christian values and
professional ethics. CHAK’s health care delivery systems
include: Hospitals, Health Centres, Dispensaries, Community
Based Health programmes and Clinical Medicine training
colleges.
MEDS was established to fulfl two broad objectives:
(i) To provide a reliable supply of essential medicines and
medical supplies of good quality at afordable prices
(ii) To improve the quality of patient care through capacity
building in all aspects of health services and general
management, with specifc emphasis on the essential
drugs concept and the rational use of drugs
In order to achieve the above two objectives, MEDS adopted
a two-pronged approach focusing its services on two major
areas:
a) Drugs and medical supply services - Supply Chain
management activities.
b) Capacity Building and client support services - Capacity
Building activities.
From a small supply chain of less than 50 church health
facilities, MEDS customer base has grown rapidly over the
years to cover other non-proft making health providers
such as NGOs, Donor funded projects, Government health
facilities and Community Based Health Care Initiatives in
Kenya. MEDS is currently serving more than 1,800 corporate
clients in Kenya and beyond. This growth has been due to
good strategic planning and leadership since inception.
2 ENHANCING CAPACITY FOR A GROWTH STRATEGY
1.2 GOVERNANCE AND ORGANIZATION STRUCTURE
To oversee the execution of planned activities, MEDS has
been operating with a governance and management
structure that consists of:
a. Board of Trustees (BOT): The apex organ of the
organization and it draws its membership from KEC and
CHAK. The BOT consists of six senior church leaders, three
from each secretariat. The chairman Board of Directors
also chairs BOT, with the General Secretary of CHAK and
Secretary General of KEC serving as Joint Secretaries.
BOT is also the ultimate reference for decision making,
including the appointment of the Managing Director.

b. Board of Directors (BOD): Composed of eleven
members, fve from each secretariat and the Managing
Director, who is the Secretary to the Board. The
Chairmanship of BOD rotates on a three-year basis
between KEC and CHAK. The functions of the Board
includes appointment of senior management of MEDS,
development and review of policies, opening and
maintaining bank accounts for the Trust, approving plans
and budgets among other responsibilities.
c. Management Committee (MC): The executive arm
of MEDS that consists of the Managing Director and
Heads of Departments. The Managing Director chairs
the Management Committee. The functions of the
MC include overseeing the day to day operations and
ensuring that the correct books of accounts are kept with
respect to the afairs of the organisation.
d. Departments:
(i) Operations
Operations department is charged with the supply chain
management function with specifc responsibilities of
product selection and quantifcation, procurement,
quality assurance, warehousing and stock management
and order processing.
(ii) Customer Services
Customer Services department sources customer orders
to meet sales targets as a primary function and capacity
building with specifc responsibilities in training, feld
services and business development, customer care,
distribution and logistics management.
(iii) Finance and Administration
Finance and Administration department is charged
with the responsibility of prudent management of the
fnances. The department takes a lead role in advising the
organization on investment opportunities and ensuring
that the fnancial targets are met to enhance fnancial
stability.

(iv) Managing Director’s Ofce
Managing Director’s ofce oversees: Human Resources,
Internal Audit and Information Communication and
Technology (ICT) functions in addition to the fully
established departments.
1.3 ACHIEVEMENTS REALIZED DURING THE 2008-2012 STRATEGIC PLAN
The 2008-2012 Strategic Plan had a theme of “Towards
Achieving a Balanced Growth” and was a growth based
strategy. The plan focused on the following: strengthening
of the fnancial base for sustainability; improving customer
services for retention and growth of customer base; re-
engineering internal processes to enhance operational
efciency and boosting excellence in customer service; and
developing an enabling internal and external environment
through capacity and organization-wide quality assurance.
As part of strategy evaluation, two organisational assessments
were carried out in 2010 and in 2012 on MEDS performance,
including stakeholder surveys to determine the extent of
achievement of the 2008-2012 Strategic objectives. The
specifc objectives for the 2008-2012 strategic plan were
to: achieve an overall revenue growth of 20% over the
plan period; grow customer base by 20 % over the plan
period; re-engineer the business processes; and develop
organizational capacity to sustain growth. The reports of
these organizational assessments provided lessons for the
strategic direction of the next fve years.
MEDS l STRATEGIC PLAN 2013-2017 3
1.3.1 Revenue growth
From a huge boost on special projects, MEDS realised the
highest gross sales income of Kshs. 5.2 billion in 2009. MEDS
sales to regular clients grew by Kshs. 664m (from Kshs. 776m
in 2007 to Kshs. 1.440b in 2012), achieving an average annual
revenue growth rate of 15% during this plan period. Despite
the positive business turnover, the debt exceeding 30 days
credit period remained a major challenge.
Although MEDS posted good fnancial results during this
period, the training and quality control laboratory functions
faced sustainability challenge during the period 2008-2012.
This challenge calls for special attention in the strategic plan
for 2013- 2017 to develop and implement strategies that will
see a turnaround of the two business units for sustainability.
1.3.2 Customer Focus
MEDS grew its customer base from 1,500 in previous plan
period to more than 1,800 (20%). The results were achieved
by expanding customer coverage and penetrating into
new markets. Over the plan period, MEDS Management
reinforced a performance culture and customer-centred
orientation in services delivery.
Growth trend of MEDS Clients
There was some degree of success achieved through
automation to improve access and speed of transacting
business and, internal efciency. To monitor the impact
of its services and to keep abreast with technology, MEDS
maintained an elaborate feedback system including Field
Ofcers and the installation of Customer Relationship
Management (CRM) solution in 2011 that has allowed
customers to have “real time” information regarding their
orders, accounts’ statements, among other benefts. The CRM
solution makes MEDS more visible to clients, with increased
efciency and reduction in turnaround period in serving the
clients, for it is a platform that provides virtual interaction
between MEDS and clients. It also allows online customer
support through use of “Chat facility” that allows customers
to raise their queries directly with the Customer Service desk.
MEDS 2013-2017 Strategic plan addresses concerns from its
stakeholders to ensure continued competitive advantage
and improved customer satisfaction index.
1.3.3 Re-engineering the business
processes
During the 2008-2012 plan MEDS put in place a rigorous
quality assurance process which ensured, among other key
initiatives, quality and afordable products. In May 2009, MEDS
Quality Control Laboratory attained WHO Pre-qualifcation
and was published on the WHO website: www.who.int/
prequal. This made it one of the three laboratories in Africa
and the frst (globally) faith based QC Laboratory to become
WHO prequalifed. Thus MEDS complements the work done
by the Kenya National Quality Control Laboratories.
Though the laboratory has continued to operate at
international level of WHO Good Practices for Pharmaceutical
Quality Control Laboratories (GPPQCL), its sustainability
has remained a challenge. The 2013-2017 Strategic Plan
addresses this challenge through turnaround strategies.
According to the results of the June 2012 organisational
assessment and stakeholders’ survey, MEDS attained a
Customer Satisfaction Index of 77%.
Minister for Medical Services, Hon. Prof Anyang’
Nyong’o launching MEDS QC lab on 29
th
May 2009
4 ENHANCING CAPACITY FOR A GROWTH STRATEGY
Another key milestone
achieved during the
plan period was MEDS
relocation to the new
state-of-the-art, ultra-
modern MEDS Centre,
which was opened
ofcially by H.E. the
President of the Republic
of Kenya, Hon. Mwai
Kibaki, C.G.H, M.P., on 13
th

March, 2012. The new
strategic location,

with a
warehouse capacity to
hold all the stock items
required for sustaining
operations and future
expansion, gives MEDS
the opportunity to
attract more business
and improve employee
performance due to
the improved working
environment.
Managing Director receiving ISO
Certifcate from the MEDS QMS team
MEDS Board of Trustees/Directors and top management with H.E
the President of the Republic of Kenya, Hon Mwai Kibaki, C.G.H, M.P.,
during the Ofcial Opening of MEDS Centre on 13th March 2012
MEDS Centre Ofcial Opening of
MEDS Warehouse
1.3.4 Enhance the Working Environment to improve Employee Motivation
MEDS implemented Quality Management System (QMS) that
enhances efciency and efectiveness in rendering its services.
MEDS ISO 9001:2008 Certifcation in December 2012 is an
achievement which goes a long way in realising higher level of
customer satisfaction.
1.3.5 Unrealised strategic initiatives
Despite the various achievements during the plan
period (2008-2012), a number of planned activities were
not concluded and the same have been carried forward
to the next strategic plan (2013-2017). Some of the key
issues included: building a vibrant Human Resources &
Administration function, developing a Public Relations
function and Advocacy policy, escalation of quality
assurance system to every part of the organization to
facilitate accreditation with international bodies like
European Union Accreditation and re-alignment of the
organizational structure to support the strategy.
MEDS l STRATEGIC PLAN 2013-2017 5
“…….it is clear that the Government cannot
meet all the health needs of the population on
its own. The Kenyan population has continued
to grow over the years, and the demand on
health facilities has greatly increased. We
therefore strongly support the contribution of
other players including faith-based organizations.
In this connection, I would like to acknowledge
the contribution that MEDS has continued to
make in the delivery of healthcare services to
Kenyans. We welcome the contribution of MEDS
in improving access to essential medicines and
supplies as well as in training health workers.”
“……We must also beware of the dangers
of counterfeit drugs that cause harm to
the patient. In this regard, i recognize the
role played by MEDS through its stringent
Quality Assurance System “
10000sq meters of MEDS Warehouse
MEDS WHO Prequalifed Laboratory
“It is my great pleasure to preside over the
ofcial opening of the new centre of the
Mission For Essential Drugs and Supplies
(MEDS).
The inauguration of this new Centre will
enhance the capacity of the Mission in
delivering health services to Kenyans and
the wider East and Central Africa region.”
6 ENHANCING CAPACITY FOR A GROWTH STRATEGY
MEDS key success factors include: leveraging on WHO
re-inspection and prequalifcation of QC Laboratory in
2012; ISO 9001:2008 Certifcation in 2012; supply chain
management experience of more than 27 years; Capacity
Building and client support activities; unique corporate
identity and clientele backed with good governance; and
committed and experienced staf with good leadership and
management.
The in-house quality control laboratory, set up in 1997
achieved WHO pre-qualifcation status in May 2009. This
laboratory serves MEDS in analysis of tender-samples before
procurement, analysis of stock within the MEDS warehouse
and investigation of quality complaints. The laboratory also
analyses samples of medicines on request by external clients.
The WHO pre-qualifed quality control laboratory supports
the quality of products and profles MEDS as a quality brand.
MEDS pharmaceutical supply chain management is
characterised by professional product selection, forecasting
and quantifcation, procurement, freight and forward
clearing for imports and exports, quality assurance, good
warehousing and distribution practices. Formulary of more
than 800 stock items based on the WHO essential medicines
concept ensures adequate stock holding.
10,000 square metres Warehouse capacity at
MEDS Centre on Mombasa Road, Nairobi
1.4 KEY SUCCESS FACTORS
Consignment being loaded for
shipment to the Republic of CHAD
The Capacity Building and client support function is
another key success factor and a vital element of MEDS
support to its clients in addition to providing afordable
quality medical supplies to its clients. MEDS has an active
client support programme that takes the following forms:
capacity building, training of health workers that translates
to improved service delivery, feld services, publications
and timely professional advice. MEDS has trained close to
20,000 health workers since 1988. Field Ofcers visit clients
regularly throughout Kenya and address their concerns frst
hand. In addition, the clients are able to communicate their
expectations to MEDS management. Critical problems are
often addressed during such visits which are also a great
opportunity for on-the-job training on use of some of the
products supplied by MEDS.
MEDS has a quarterly newsletter, the MEDS Update,
targeting all MEDS clients and other stakeholders. In this
newsletter, matters of importance are brought to the
attention of the clients while also giving a chance to share
recent developments in the health sector. MEDS has a
committed and dedicated team of qualifed staf who are
results-oriented and customer focused.
MEDS distribution network covers all the parts of Kenya,
Horn of Africa and the Great Lakes Region and at no extra
cost to clients within Kenya. The distribution is based on a
“pull” system, where clients get what they require. MEDS
turnaround time from receipt of order to delivery to
clients is within 3 working days. Zoning of the country and
management of a feet of contracted transporters forms part
of the elaborate logistics management.
MEDS Staf pose for a photo in front
of MEDS Centre, October 2011
MEDS l STRATEGIC PLAN 2013-2017 7
1.5 STRATEGIC PLANNING PROCESS
After commissioning of the strategic development
consultancy, the consultants carried out a desk study of
documents and engaged management on the emerging
issues relating to MEDS business. To collect views from the
stakeholders, a survey was conducted using both structured
questionnaires and interviews. The results from the
questionnaires and interviews were analysed and used in the
development of the current plan during
a planning workshop at Lake Elementaita
Lodge, Naivasha.
The external analysis was infuenced
more by the development partners,
Government institutions, suppliers,
transporters and the two ecumenical
secretariats (CHAK and KEC). The
stakeholder analysis was instrumental
in developing strategic objectives
leading fnally to the implementation
matrix. Monitoring and evaluation for
the strategic plan was recommended
based on the performance indicators as
developed in the implementation matrix.
Strategic planning is a continuous process that adopts
constant feedback and review. In addition, as MEDS grows
and changes, so will the various strategies. Existing strategies
will change and new ones will emerge during the plan
period. This will constitute part of the continuous process
of improving the business in an efort to succeed and attain
organisational strategic goals and objectives.
The experiences gained from the implementation of the
activities of 2008-2012 Strategic Plan, have been profled
as lessons learnt to guide actions in the forward strategy,
to avoid pitfalls and replicate best practices for enhanced
performance. The following are some of the lessons:
a. MEDS managed to build the new ofces without any
loans from the fnancial institutions, which confrms
the prudent fnancial management in the organisation.
MEDS should build on this strength going forward into
the next strategy period.
b. Feedback from the customers’ satisfaction survey
indicated that MEDS requires to get more actively
engaged with the customers to realise business growth.
c. Flexibility on the part of the Board in allowing
Management to be fully in charge of operations will
improve the business performance especially in the area
of non-stocked items procurement.
d. Due to absence of a fully-fedged HR function, important
aspects of employee relations and development did not
get the required attention to realign the organizational
structure to support the strategy.
Board of Directors, MEDS Management and Consultants
Strategic Planning Retreat in Lake Elementaita, Naivasha
1.6 LESSONS LEARNT
8 ENHANCING CAPACITY FOR A GROWTH STRATEGY
Chapter 2: STRATEGIC DIRECTION
T
he Strategic Plan (2013-2017) takes cognizance of the
lessons and achievements of the preceding period.
This strategy statement sets the long-term strategic
direction and broad policy directions of the organisation. It
gives MEDS a clear sense of direction and a blueprint for its
activities during the next fve years. The theme of this Plan:
“Enhancing Capacity for a Growth Strategy”, intends to
move MEDS from good performance in the previous plan
period to great performance. Chapter 2 spells out MEDS
identity and its strategic intent.
2.1 CORPORATE IDENTITY
The statement of corporate identity presented here below
portrays the uniqueness of MEDS and identifes the basis
of its brand. The corporate identity has immense value in
terms of its acceptance and positioning in the market. MEDS
Corporate Identity states:
“MEDS is a faith based organization registered as a Trust of
an ecumenical partnership of Kenya Episcopal Conference
(KEC) and Christian Health Association of Kenya (CHAK), thus
contributing to the healing ministry of Christ”.
2.2 VISION
Spelling out what an organisation wants and intends to be
in future, or where it should be to best meet the needs of the
stakeholders, is critical to success and superior performance.
Great organizations are inspired to success by a powerful
vision of their future. MEDS vision is to be:
“A world class faith based medical supply chain and capacity
building organization”.
2.3 MISSION STATEMENT
This statement of purpose and function legitimizes an
organisation’s existence. MEDS mission statement is:
“To provide reliable, quality, afordable essential medicines,
medical supplies, capacity building, quality control and other
pharmaceutical services guided by Christian and professional
values”.
2.4 CORE VALUES
Pursuance to the above vision and mission, MEDS and its
stakeholders will have to be guided by appropriate core
values. These values ensure relevance and boost motivation
to the stakeholders:
i. Christian values: As a Christian organization, MEDS
is guided by Christian values and principles which act as
symbols of the organisation’s identity.
ii. Partnerships: MEDS fosters collaboration with other like-
minded stakeholders and partners. Partnership emanates
from the recognition that MEDS requires the contribution of
all stakeholders to achieve its goals.
iii. Results-Oriented: Results legitimize the existence of
an organization. MEDS endeavours to deliver results to its
stakeholders with emphasis on measurable impact from its
interventions. MEDS also reinforces behaviour that leads to
top performance and aford stakeholders frst class services.
iv. Customer focus: Legitimacy of any organization lies in
its ability to serve its customers. MEDS commits itself to give
the highest quality of service to all its customers, providing
the highest quality products and services.
v. Innovation: MEDS operates in a dynamic environment in
the areas of the products, processes and systems. To insure
against obsolescence, MEDS endeavours to be continuously
innovative in all its activities.
vi. Integrity: MEDS is a unique organization whose
operating beliefs are built on Christian values. Integrity is a
distinguishing organizational character to be expected of all
members of MEDS. The nature of business and clients served
as well as the public expectations make integrity a must for
all who work and relate with MEDS.
vii. Teamwork: The business of MEDS renders itself to
teamwork. To achieve seamless customer service, the
organizational units work as a team with all appreciating
the important role played by others to ensure individual and
organizational success.
2.5 CORE FUNCTIONS
As outlined in Chapter 1 and according to the above
mission statement, the following continue to be MEDS core
functions: Supply Chain Management; Capacity building
of health workers and Quality Assurance aided by control
laboratory.
MEDS l STRATEGIC PLAN 2013-2017 9
Chapter 3: STRATEGIC ANALYSIS
T
his part of the document provides information
gathered through scanning the external environment
and scrutinising the internal environment of MEDS. For
the purposes of this plan, two tools were used: PESTEL and
SWOT Analyses for both external and internal environmental
analysis. Strategic analysis is a discourse on how MEDS
will leverage internal capabilities and other partnerships
to optimize the opportunities in markets where the
organisation has chosen to do business. Chapter 3 contains
the results of the two planning tools and gives details arising
from both the external and internal environments of MEDS.
3.1 EXTERNAL (PESTEL) ANALYSIS
As Kenya moves towards a devolved system of government,
MEDS will continue to be a key complementing partner to
the government’s supply chain mechanism. It is therefore
important that steps are taken to continue consolidating the
past successes while innovating better ways of coping with
emerging trends. What is not in doubt is the major role the
faith based sub-sector will continue to play in the Kenyan
healthcare system.
To inform MEDS growth strategy for 2013-2017, the
conditions in the external environment which covered the
political, economic, social, technological, ecological and
legal (PESTEL) factors were analysed. The analysis provides
a method that is efective in aligning the strategy for MEDS
with other stakeholders within the external environment, in
which the favourable factors will be exploited to improve
and strengthen MEDS ability to manage or eliminate the
unfavourable factors.
a. Political factors
Political factors are important for operational predictability
and forward planning as politics is the life of the state
and afects business either positively or negatively. MEDS
therefore will re-position business activities to comply with
government regulations, take advantage of the prevailing
conducive political climate to advance its growth ambition
to the next level, or change course to sidestep barriers along
the way.
The key political factor that would impact on MEDS strategy
is the implementation of the 2010 Constitution with dual
governance structure: National Government and County
(47) Governments. The Constitution focuses on devolution
of activities of the Central Government to Counties.
b. Economic Factor
Even though ofcial records intimate reduction in poverty,
the ever increasing cost of living with double digit infation
rates reduces the purchasing power of Kenyan, hence
demand for health services provided by MEDS clients and
purchase orders. However, with stimulus by government
spending on infrastructure and Vision 2030 projects, it is
expected that more jobs may be created in future, leading to
rising incomes and efective demand for essentials including
medicine.
MEDS has in the past traded with clients based in 8 African
Countries. The coming into force of the single market
economy within the fve East African countries under the
Common Market Protocol (CMP) is regarded as benefcial to
MEDS which is riding on the fag and reputation of quality and
therefore an opportunity to pursue the growth strategy on a
combined population (consumers) of more than 125 million
people in the region. MEDS will leverage past experience,
direct contacts of identifed entities and references from the
Ofce of Commercial Attaches to the countries of interest to
penetrate other markets in the East African Community and
Sub Saharan Africa hub.
c. Social factors
The emerging overall health of Kenya’s population is
primarily threatened by HIV/AIDS, malaria, tuberculosis,
and non-communicable diseases. Consequently, not only
are new and efective medicines, medical devices and
diagnostics to manage these diseases needed but efcient
supply chain to improve accessibility as well. The social
trends have also seen many Kenyans develop diseases due
to their occupations, as they engage in economic activities
that compromise their diets and healthy lifestyles. Hence the
use of food supplements is bound to grow signifcantly to
help boost the immune system of Kenyans and other people
in countries within Africa. This provides an opportunity to
venture into and satisfy the emerging health issues related
to the life styles.
10 ENHANCING CAPACITY FOR A GROWTH STRATEGY
d. Technological factors
Technology is important for the health sector not only in
ICT but also in medical equipment for use in testing and
treatment. MEDS ICT investments include the Customer
Relationship Management (CRM) solution for interactive
communication with customers; besides being one of the
three organisations with the WHO prequalifed laboratories
in Sub Saharan Africa. This gives MEDS a competitive edge
and business opportunity by ofering the service of testing
drugs both for manufacturers and fnal end users. MEDS will
keep itself abreast with any and all technological innovations
including automating the warehouse, upgrading the ICT
adoption rate in the health facilities (in order to improve
information fow and optimise the CRM capabilities) and bar
coding among the planned initiatives.

e. Ecological and Legal factors
MEDS operations do not pose any ecological challenges
that call for specifc attention. The legal factor identifes
provisions specifc to the health sector and other aspects
of MEDS operations. Key provisions are contained in the
regulations of the health sector and local authorities Act and
By-laws where MEDS conducts business. MEDS is already
known within government sphere as a reliable provider
of quality human medicines, complementing KEMSA. The
NQCL and MEDS QC Laboratory complement each other
in the testing role, being the two facilities with WHO Pre-
qualifcation status in Kenya and do more business in the
pursuit of the growth strategy by leveraging joint capacities.

3.2 SWOT ANALYSIS
As business becomes more competitive, with rapid changes
in the external environment, information from internal
environment adds crucial elements to the efectiveness of
long-term plans. Organizations have also to update their
core competencies and internal environment for survival
and sustained growth. This Strategic Plan (2013 – 2017) takes
cognizance of lessons and achievements of the preceding
plan period.
Operating from the modern MEDS Centre, the organisation
is well positioned to leverage its good reputation, the WHO
Pre-qualifed QC laboratory, organisational infrastructure
and experienced leadership and management to pursue a
growth strategy and serve a bigger market. A growth strategy
would require not only consolidation of the gains made
previously but also prioritization of key drivers of success,
hence the assessment of resource capabilities to match the
increasing operational needs of an expanding organization.
The 2013-2017 Plan will lay special emphasis on the Capacity
Building and Laboratory, as business units, to make them
self-sustaining. Eforts and attainment of ISO 9001:2008
certifcation have profled MEDS to greater heights.
The Pharmaceutical Technical Committee, before tenders,
makes regular visits to manufacturing frms to verify
adherence to current good manufacturing practices (cGMP).
This practice, coupled with testing at the QC laboratory, on-
going surveillance of product delivery mechanisms, and
continuous training of health workers at health facilities on
good handling/prescribing practices make MEDS to stand
out in quality products and services.
3.2.1 Summary of the Strengths and
Weaknesses
Strengths
MEDS has relied on several strengths to sustain its current
business. The key ones are strong fnancial base, quality
products and afordable prices to clients. Other strengths
include: active performance management (appraisal system);
documented policies and procedures; computerized
systems and a comprehensive ERP; spacious warehousing
with good warehousing and distribution practices; excellent
accountability of donor funded/GOK projects leading
to positive audit reports; qualifed technical personnel
and management team: competent and motivated staf;
committed and dedicated Board of Trustees and Board
of Directors; location and corporate reputation/image;
adequate ofce space with training rooms and a multi-
purpose hall.
Weaknesses
The key weakness is the turnaround time and slow response
to the market trends and needs. Other weaknesses include:
capacity building function that is still not fnancially self-
reliant; occasional delays in delivery of non-stock items;
huge outstanding debt with church health facilities;
communication lapses that require streamlining and
enhancing.
MEDS l STRATEGIC PLAN 2013-2017 11
3.2.2 Summary of the Opportunities and
Threats
Opportunities
MEDS has identifed several opportunities within Kenya,
Common Market Protocol (CMP) and the wider Sub-Saharan
Africa. These opportunities will be exploited within the plan
period.
Threats
Fake and counterfeit commodities pose a threat of unfair
competition and unreliability of some pharmaceutical
suppliers, local manufacturers of medicine, distributors
and private players infltrating the Kenyan market. The high
infation rate, cost of living and unemployment continue
reducing the purchasing power of most health facilities.
MEDS will make use of her strengths and exploit the
opportunities to reduce the impact of these threats.
Against these factors, MEDS has developed and shall
implement growth-based strategies to assure sustainability
of the business in the next strategic period of 2013-2017.
MEDS capability to pursue its growth strategy, organisational
preparedness to take advantage of business opportunities in
traditional and new markets and the resource re-alignments
required to navigate the operating environment, mitigate
constraints and run an efective and efcient organization.
MEDS stakeholders include customers across Kenya and the
African continent, besides business associates, suppliers,
public, development partners, CHAK and KEC Secretariats
and transporters. A conducted survey sought views of
stakeholders on various facets of customer and business
relations, their expectations and satisfaction levels with
MEDS services. The survey fndings revealed important
lessons that have informed the formulation of the strategic
plan tabulated below.
MEDS will use the fndings from the stakeholder analysis in
addressing the following issues:
CHAK and KEC Secretariats: maintain the afordability tag
and serve the poor and disadvantaged who are treated at
the Christian health facilities as MEDS ensures sustainability
of her operations which would culminate in the business
expansion and growth.
Ministry of Medical Services AND Ministry of Public
Health & Sanitation: consolidate the current good working
relationship and complement the work done by NCQL in
ensuring provision of quality products to their customers.
KEMSA: complement the distribution network of KEMSA in
all counties to enable easy and cheap availability of medical
supplies
Development Partners: engage them in fnding solutions
to common challenges
Customers: improve service delivery for higher customer
satisfaction and enhanced market growth
There are a few instances where there are many variances
between the stakeholder’s expectations and MEDS
expectation as shown on table 2 below.
3.3 STAKEHOLDER ANALYSIS
12 ENHANCING CAPACITY FOR A GROWTH STRATEGY
Table 2: Stakeholder Analysis
Stakeholder Stakeholders’ Expectation MEDS Expectation
Government
(Ministry of
Medical Services
AND
Ministry of
Public Health &
Sanitation)
MEDS QC laboratory to collaborate with
Kenya National Control Laboratory for
quality assurance in Kenya
To be the alternative supply agency to
public health institutions.
MEDS to collaborate in areas such as
product testing using its WHO pre-qualifed
laboratory
To positively contribute to quality control
through the use of its WHO pre-qualifed
laboratory.
KEMSA
MEDS to collaborate with KEMSA in supply
chain management.
MEDS to operate autonomously and
partner with KEMSA only as necessary in
the supply of medicine and other supplies
to all the Counties
CHAK and KEC
Secretariats
MEDS to maintain the afordability tag and
serve the poor and disadvantaged who are
treated at the Christian health facilities
Serve the Church, public and private health
facilities and grow to realise sustainable
income for operations
MEDS to continue the strong collaboration
with government functionaries such as
KEMSA and the NQCL
Continued Collaboration and partnership
Development
Partners
Full utilization of the capacity of the MEDS
especially the laboratory.
Operate as a business unit
MEDS to strengthen partnerships with
various stakeholders for greater impact
in supply chain and capacity building
initiatives
Increased presence through the extensive
use of MEDS electronic system (CRM) and
feld services
Suppliers
The good relationship between MEDS and
Suppliers to be sustained.
MEDS to hasten feedback on test results on
sample analysis
MEDS expects quality products which
meets specifcations from suppliers.
Prompt deliveries and meeting deadlines
Transporters
Observance of the delivery schedule to
minimize delays
Trucks to be dispatched promptly after
loading so as to stick to their scheduled
timings.
Frequent feedback and early warning
in case of changes to make necessary
arrangements for improved service delivery
They should provide good service and be
ready and available when needed
Customers
High quality product/service
Afordable products/services
High customer satisfaction through various
strategies
MEDS l STRATEGIC PLAN 2013-2017 13
Chapter 4: STRATEGIC ISSUES, OBJECTIVES AND STRATEGIES
M
EDS strategic focus is to infuence its resource
potential and core competencies to achieve
what at frst may seem to be unachievable goals
in a competitive environment. In order to realise improved
performance, MEDS will have to enhance its capacity for a
“Growth Strategy”. The environmental analysis contains
critical underlying factors that shape the environment
within which MEDS operates and determine the overall
organisational performance. Chapter 4 presents MEDS
strategic issues, strategic choices and thrusts, and strategic
objectives and strategies to be pursued in the next fve years.
4.1 STRATEGIC ISSUES
MEDS strategic issues are broken down into three
organizational levels: Corporate, Competitive and
Operational in light of strategic choices made.
4.1.1 Corporate Strategic Issues
Corporate issues are addressed by corporate strategies
that are long-term and are associated with deciding the
optimal mix of businesses and the overall direction of the
organization. Recognizing inherent corporate issues to be
addressed, MEDS addresses key corporate strategic issues in
the 2013-2017 Strategic Plan.
4.1.2 Competitive Strategic Issues
Competitive strategic issues are those associated with
methods of competing in the health sector. Knowledge of
competitors is required before formulating a competitive
strategy. Aware of the need for improved competitiveness,
MEDS addresses the identifed key competitive strategic
issues in the next fve years.
4.1.3 Operational Strategic Issues
Operational strategic issues are short-term and are
associated with the various operational departments of the
organisation. MEDS has identifed key strategic issues aimed
at boosting its efciency and efectiveness.
4.2 STRATEGIC CHOICES AND THRUSTS
From the Strategic Analysis there are several strategic choices
that MEDS would have adopted. The framework used
during strategy formulation will be useful during strategy
implementation, monitoring and evaluation.
4.2.1 Strategic Choices
Driving forces are the critical underlying factors that shape
the environment within which MEDS operates. These forces
will determine the overall performance of MEDS depending
on how the organisation responds to them thus dictating
the what, when and how of MEDS strategic options. The
following driving forces were identifed as being relevant to
the mission of MEDS: Government policy changes, Product
innovations, Technological changes, Client sophistication
and expectations, Competition and Marketing innovations.
MEDS had various strategic options that it could adopt in its
2013-2017 Strategic Plan as listed below.
Option 1: Maintaining or sustaining the current
operating levels: This involves maintaining the current
operating capacity of MEDS but adjusting the operating
parameters to cater for infation and purchasing power of
the clientele.
Option 2: Building capacity for growth in the medical
supplies: This option implies that for the next plan period,
MEDS concentrates on building capacity that would lead
into growth.
Option 3: Enhancing capacity for a growth strategy:
This option involves the whole organization and leads into
diversifying product range. The sustainability of both the
capacity building (training) and QC laboratory operations as
MEDS business units are addressed through this option
The most appropriate strategy for MEDS, taking into account
the environmental scanning, is the third option; enhancing
capacity for a growth strategy. The 2013-2017 Strategic
Plan will embark on a three level strategy as outlined below:
Corporate strategy: - This is concerned with the overall
purpose and scope of MEDS to meet its stakeholders’
expectations. At this level, MEDS will pursue a growth
strategy – focusing on internal and external growth
strategies..

Competitive strategy – This level is more concerned with
how MEDS business units compete successfully in a particular
market. At this level, MEDS will pursue a turnaround
14 ENHANCING CAPACITY FOR A GROWTH STRATEGY
strategy that ensures that both QC laboratory and capacity
building business units attain fnancial sustainability.
Operational strategy – This last level is concerned with
how each function of MEDS is organised to deliver the
corporate and business-unit level strategic directions. At this
operational level, MEDS will pursue best practices to foster
the highest possible level of efciency and efectiveness.
4.2.2. Strategic Thrusts
The strategy formulation involved designing and developing
MEDS strategies. The process involves deciding the best
course of action for accomplishing organizational goals and
objectives hence achieving organizational purpose. MEDS
Strategic thrust revolves around the following pillars:
1. Market Penetration to Sub-Saharan African Region:
Over the last 27 years, MEDS has been steadily growing its
sales within the church health facilities, Non-governmental
Organisations and government-owned health facilities.
Bulk of the clientele catchment has mainly remained within
Kenya borders. The defciency in supply of drugs by the
government to the public and church health facilities has
contributed greatly to MEDS growth. The implementation of
the new constitution which will lead to devolved government
operations through counties has been integrated in the
strategic plan for 2013-2017 and it is envisaged that MEDS
will build on the fnancial base developed over the years to
sustain its growth in the Kenyan medical supplies market
and within the larger East and Central African market and
the Sub-Saharan Africa region as a whole.
2. Aggressive marketing of MEDS as a brand: MEDS
was set up as a revolving drug fund project and now it has
complete autonomy and does not rely on external funding
for its routine operations. At least 40% of the health services
in Kenya are provided by church health facilities, which have
received no subsidies from the government since 1998,
although some have benefted from seconded staf from
government institutions. In developing the strategic plan
2013-2017, views of all the stakeholders for MEDS were taken
into consideration. From the analysis done on the position of
MEDS in the medical supplies industry, the growth strategy
for the period 2013-2017 was adopted. This strategy will
enhance the operations of MEDS, providing a reliable supply
of essential drugs and medical supplies of good quality at
afordable prices.
3. Sustainability of the capacity building (training)
function: The programme for training and supporting client
health facilities which started in 1987 has been given more
emphasis in the current strategic plan 2013-2017, especially
after the withdrawal of donor support towards training
during the previous strategic plan. MEDS training normally
involves residential seminars, facility-based training and
consultancy services. Courses are ofered every year for all
cadres of health care workers, ranging from board members,
administrators and in-charges, matrons, programme
coordinators, and store managers to patient attendants.
4. Sustainability of the Quality Control Laboratory:
MEDS has a functioning quality assurance system which
guarantees that its stocks meet international quality
standards. Regular visits are made to manufacturing plants
of local suppliers in order to verify adherence to good
manufacturing practices. Furthermore, customer feedback is
routinely sought. Stored products are randomly sampled for
chemical quality analysis as a matter of routine in order to
verify their continuing good quality. The strategic plan 2013-
2017 has developed strategies that will lead to the maximum
utilization of the laboratory to ensure that product quality is
maintained.
5. Business Process Re-engineering and Supporting
structures: It is envisaged that by the end of the strategic
plan 2013-2017, MEDS will have achieved the desired
tremendous growth in all the areas of its operation. This
can only be achieved through improved efciency and
efectiveness in MEDS operations. Monitoring and evaluation
of the strategic plan through the performance indicators
developed in the implementation matrix will enable the
organization to assess the efectiveness of the strategic
objectives in delivering the desired results and the impact
on the stakeholders.
4.3 STRATEGIC OBJECTIVES
Based on the preceding analysis of stakeholders’ expectations,
the strategic choice MEDS has made and the strategic
issues outlined under part 4.2 above, MEDS formulated its
strategic objectives following the Balanced Scorecard of four
key priority areas. MEDS has crafted pointed strategies to
achieve the following Strategic Objectives:
MEDS l STRATEGIC PLAN 2013-2017 15
Priority Area 1: Financial Focus
Strategic Objective 1:
To achieve an annual sales revenue growth of 15% (net of
price increase)
Strategic Objective 2:
To grow non-operating income by 10% annually and
improve liquidity
Strategic Objective 3:
To grow income from QC laboratory by 25% annually to
attain sustainability
Strategic Objective 4:
To grow income from Capacity Building function by 20% to
attain sustainability
Priority Area 2: Customer Focus
Strategic Objective 5:
To grow Customer Base by 15% annually

Strategic Objective 6:
To attain 100% level of customer satisfaction

Strategic Objective 7:
To attain 100% availability of stock
Priority Area 3: Internal Business Processes
Strategic Objective 8:
To re-engineer business processes for enhanced efciency
Priority Area 4: Organizational Capacity
Strategic Objective 9:
To build organisational capacity for the growth strategy
16 ENHANCING CAPACITY FOR A GROWTH STRATEGY
Chapter 5: STRATEGY IMPLEMENTATION
5.1 STRATEGY IMPLEMENTATION
S
trategic plan implementation will involve putting
the strategy into practice. This includes developing
steps, methods, procedures to execute the strategy
and determining which strategies should be implemented
frst. Chapter 5 provides detailed plan implementation
requirements and proposed resource allocation to implement
MEDS goals and objectives identifed during the strategy
formulation process.
The strategies that have been formulated will be implemented
in order to achieve the objectives of MEDS. In this regard,
a comprehensive Implementation Matrix that details
activities, outputs, time frames, responsibility centres for
implementing those activities, and performance indicators
was developed. It is noted that these elements will provide
indicators for strategy control through continuous monitoring
and periodical evaluation.
5.2 RESOURCE IMPLICATIONS AND
MOBILIZATION
In order to implement this Strategic Plan, resource mobilisation
and budgeting for the plan period will be carried out by
MEDS to determine the estimated resources required each
year. Annex 2 presents the organisational structure adopted
to execute this Strategic Plan.
5.3 RISK ANALYSIS AND CRITICAL
ASSUMPTIONS
The successful implementation of this strategic plan is
premised on certain prevailing conditions and assumptions,
hence lack of the same could derail the organization from
the charted course. Central to the efective implementation
of the strategy is management’s discipline to execute chosen
strategies and remaining focused on the mission. Risks
(identifed during plan formulation) that would hinder plan
implementation or reduction of the positive efect of a plan
are important to identify to enable mitigation. The potential
risk factors and events which, if they occurred, would
threaten attainment of MEDS planned strategic objectives
were identifed through environmental scanning to enable
preparation of mitigation plans.
5.4 STRATEGY CONTROL,
MONITORING AND EVALUATION
Strategy control links the elements of the strategic planning
process together and helps an organisation to continuously
adjust or revise strategic inputs and actions in order to
achieve desired strategic outcomes. Strategy monitoring and
evaluation involves examining how the strategy has been
implemented as well as the outcomes of the strategy. This
sub-section outlines how MEDS will ensure timely strategy
monitoring and evaluation. Monitoring and evaluation
provide the back-up necessary to ensure that objectives are
achieved and gaps are addressed to ensure that the plan
stays on course
5.4.1 Responsibility and Accountability
The overall responsibility of implementing corporate strategy
rests with the Management Committee, under the leadership
of the Managing Director. However, a Monitoring and
Evaluation Team has been formed to ensure the achievement
of MEDS strategic objectives in a timely manner, in line
with resource availability hence successful implementation
of the strategy for improved performance. The following
milestones will be adopted, half yearly departmental work-
plan implementation review and reporting; annual MEDS
performance evaluation and reporting; mid-term impact
assessment to inform subsequent plan review and revision;
and fnal plan evaluation.

5.4.2 Monitoring and evaluation of
Performance
Monitoring will check whether results produced by the
implemented activity were those forecasted as outputs
and whether they were achieved according to the stated
performance measurement, including timelines. A desk
top monitoring framework is developed out of the
implementation matrix to facilitate online check on status of
planned activities, thereby prompting action in case of delays
or gaps. The monitoring framework will include prompts to
management on the strategic activities implementation
progress, detail activities that are behind schedule and those
that are complete.
Evaluation provides the impact of the plan at the end of a
given period – fnancial year, mid-term and at the end of the
plan period. MEDS strategic plan will be evaluated during
and after implementation to ensure that it is feasible and
has been implemented to produce the intended results. The
evaluation will be carried out using the relevance, efciency,
efectiveness, sustainability and impact criteria. The relevance
criteria seek to ensure that MEDS strategic plan is consistent
with the policy priority of the Ministry of Health at all times.
The efciency criterion assesses the extent to which resources
are used optimally, while efectiveness criterion assesses the
extent to which the desired outputs are being achieved.
Sustainability ensures that MEDS has the capacity to continue
with the implementation of the strategies, while the impact
assessment confrms whether the strategic plan is causing
any positive intended changes.
MEDS l STRATEGIC PLAN 2013-2017 17
ANNEXES
I
n mid 1980s, the Government of Kenya adopted the
World Health Organisation’s model Essential Drug list
for the National Essential Drugs Concept as a means of
ensuring access to cost efective drugs by the majority of the
country’s population. With time, the government reduced its
budgetary allocation for healthcare provision hence locking
out the church health facilities from obtaining their drugs and
medical supplies from the Central Medical Store (currently
known as Kenya Medical Supplies Agency – KEMSA).

Consequently, the church health facilities were faced with
numerous pharmaceutical challenges for they operated in a
free market and faced several difculties in procuring drugs
and medical supplies from diferent suppliers as outlined
below:
1. Too many suppliers supplying diferent products as
required by the health facilities;
2. Inadequate capacity of suppliers to hold sufcient stock
levels leading to stock outs;
3. High costs associated with purchase of drugs from
numerous drug suppliers/chemists;
4. Low bargaining power due to small quantities purchased
by individual health facilities;
5. Lack of credit facilities from suppliers, forcing health
facilities to trade on cash terms;
6. Lack of information on drug prices and poor quality of
various products in the market.
These factors, coupled with the general poor economic
conditions, left the church health facilities struggling for
survival. The poor Kenyans who depended on these facilities
to access quality healthcare at reasonable prices continued
sufering. In order to serve the needy church health sector
efectively, Mission for Essential Drugs and Supplies (MEDS)
was started in 1986 and for the last 20 years MEDS has been a
major contributor to healthcare services in Kenya – afordable
quality pharmaceuticals and training health workers.
MEDS was established as a joint service of the Kenya
Episcopal Conference – Catholic Secretariat (KEC-CS) and
the Christian Health Association of Kenya (CHAK). It is an
ecumenical partnership of the two church secretariats meant
to improve accessibility to quality health care. As a Christian
not-for-proft making organization, and a registered Trust,
based in Industrial area, Nairobi, MEDS’ services go beyond
denominational barriers to impact on an estimated more
than 40% of the Kenyan population. When MEDS held its
frst annual general meeting in March 1987, the stock list
had 47 items (as compared to more than 800 items in 2006)
for sale to the church health units. During this meeting, the
delegates expressed an urgent need for support through
training and feld services after identifying the following key
needs:
1. The quality of patient care in church health units was very
poor;
2. Clinical diagnosis in those facilities required improvement;
3. Some church health units had bad prescribing habits
leading to poly-pharmacy;
4. Dispensing practices in most health units was poor due
to lack of qualifed staf;
5. Drug management was poor - resulting in frequent
shortages of supplies, poor stock control, drug storage,
record-keeping and quantifcation inadequacies;
6. Financial management skills were lacking hence
threatening the sustainability of many health facilities;
7. Strategic thinking was lacking, resulting into resource
misallocation and poor administration of health facilities;
8. There was inadequate training for those managing the
health units - posing a major constraint in the healthcare
service delivery;
9. The government stopped continuing education (CME)
programmes for health workers hence pressure for MEDS
training activities;
10. MEDS needed to develop a strong working relationship
and support for the health units to ensure their
sustainability and improved quality of patient care and
drug adherence.
Arising from these needs, the second MEDS objective
emerged to improve the quality of patient care through
training in good clinical diagnosis, dispensing, stock control
and general management practices. MEDS Training & Client
Support Programme was then established that same year.
To date more than 18,000 health workers from church health
ANNEX 1: THE ORIGIN OF MEDS
18 ENHANCING CAPACITY FOR A GROWTH STRATEGY
units have been trained and an average of 800 church health
facilities visited each year. In order to strengthen the client
support services even further, other interventions have since
been established; including defunct Intravenous fuids
Production Units (IVPU) and Pharmacy Assistant Training
(PAT) programme, MEDS Update and client open forums like
MEDS Days.
MEDS-partner relationship has been good since inception
and the start-up funding was from the two church Secre-
tariats (KEC and CHAK), overseas Churches and international
donors. The initial funding provided for an annual stock turn-
over and MEDS has continued to manage this drug revolv-
ing fund for subsequent purchases. The level of MEDS opera-
tions would not be where it is today if this Drug Revolving
Fund was not established.
ANNEX 2: MEDS ORGANIZATION STRUCTURE
Board of
Trustees
Board of
Directors
Managing
Director
Personal
Assistant
Administrative
Assistant
Administrative
Assistant
Purchasing
Manager
Quality
Assurance
Manager
Warehouse
Manager
Marketing and
Communications
Manager
ICT
Manager
Senior
Accountant
Credit Control
Ofcer
Administrative
Ofcer
Caretaker
Human
Resources
Manager
Internal
Auditor
Customer
Services
Manager
Training Manager
Health Supply
Chain Advisor
(KARP)
Administrative
Assistant
Head of
Operations
Head of
Customer
Services
Head of
Finance and
Administration
MEDS l STRATEGIC PLAN 2013-2017 19
20 ENHANCING CAPACITY FOR A GROWTH STRATEGY
Mission for Essential
Drugs and Supplies
D E C 2 0 1 2
P.O. Box 78040 – 00507, Viwandani
NAIROBI, Kenya
Telephone: +254-020-3920000 | +254-020-2124453 | +254-020-2460022
+254-020-2532214 | +254-020-2532216
Mobile ISDN: +254719086000 | +254730160000
Cell phone: +254722202106 | +254734600310 | +254726937222
Email: [email protected]
Website: www.meds.or.ke

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