Goodlife Pharmacy CFAO

Goodlife Pharmacy

East Africa's hub for low-cost healthcare

Industry:

Pharmacy

Region:

Africa

9,000 0 +

Products

120 0 +

Store network

492 0

Jobs supported

Goodlife is East Africa’s largest private retail pharmacy chain and top primary healthcare provider. The company has reinvented the localised model for healthcare delivery in emerging markets and is focused on increasing access to genuine, affordable over-the-counter and prescription drugs.

East Africa suffers from high mortality rates for many easily treatable and preventable diseases.

In Kenya, 54% of deaths are attributed to communicable diseases such as HIV, tuberculosis, malaria or maternal and nutritional conditions.1 In comparison, communicable disease accounts for less than 1% of deaths in the UK.2 Quality, affordable pharmaceuticals, and access to basic health care services, are critical to reversing this trend.

Chronic disease is also rising across the region. Non communicable disease (NCD) mortality rates are forecast to increase to 55% by 2030, attributable to lifestyle factors such as tobacco use, physical inactivity and poor diets.3 NCDs cause significant economic impact on Kenyan households, decreasing household income by 28.6%.4

Many emerging consumers in East Africa face signifi cant barriers to accessing medical services like diagnostics, nutritional advice, and other medical consultations. Around 75% of the population of East Africa live in rural areas, making travel to major hospital centres a challenge for the majority of people seeking treatment.5 Cultural factors can also limit access to medical treatment, especially for women. In Kenya, 11% of women aged 15-49 say not wanting to travel alone deters them from accessing treatment.6

Behind these problems are a range of issues relating to the seemingly insurmountable costs of delivering infrastructure-heavy medical facilities in rural areas, as well as cultural norms and security concerns around travel. These access issues demand innovation and new healthcare models.

1 WHO, Kenya Risk of Premature death due to NCD, 2016 | 2 Office of National Statistics, Leading UK Causes of Death 2011-2018 |3 WHO, Kenya Risk of premature death due to NCD, 2016 | 4 Ibid | 5 IFAD, Investing in Rural People in Kenya, 2018| 6 Kenya Demographic and Health Survey, 2014

Top 10 Causes of Death in Kenya for Both Sexes Aged All Ages Top 10 Causes of Death in Kenya for Both Sexes Aged All Ages
Source: World Bank, 2019.
Top 10 Causes of Death in Kenya for Both Sexes Aged All Ages Top 10 Causes of Death in Kenya for Both Sexes Aged All Ages
Source: World Bank, 2019.

Goodlife increases access to affordable, high quality medicines and health services, reaching two million people in East Africa.

LeapFrog has backed Goodlife since 2017, fuelling the company’s expansion from 19 stores initially to become the dominant pharmacy and health hub chain in East Africa. In the process, Goodlife has scaled the delivery of pharmaceuticals and medical services to low-income consumers, using digitally enabled solutions to serve remote and peri-urban communities and improve the quality and consistency of treatment.

Goodlife has rapidly evolved from a traditional pharmacy chain into an omnichannel health-hub.7 The company offers a range of clinical care services like diagnostics, vaccines, medical consultations, skin consultations and nutritional advice, through partnerships with qualified providers including diagnostic companies and telemedicine services.

Greater purchasing power through their network of pharmacies means Goodlife has been able to negotiate better contracts with its suppliers and lock in reputable supply lines, helping to eliminate the threat of sub-standard medications.8 The company buys the majority of its products from importers and distributors who they have built strong relationships with and who buy directly from established multinational pharma manufacturers.

Goodlife has created a unique product range, including single unit medicine sales, to ensure a quality solution for every customer at various price points. The company also offers a suite of digital offerings including e-commerce sale via its website, and on partner platforms such as Uber and Glovo.

Goodlife aims to grow its network to 250 stores and to broaden its reach to over 8.5 million people. Goodlife is regulated by the Pharmacy and Poisons Board, the Kenyan authority mandated to regulate Pharmacy Practice and ensure the quality, safety and efficacy of health products and technologies under the supervision of the company pharmacist.

7 Goodlife Pharmacy, Rethinking Pharmacies: Beyond Pill Pushing, 2016 |8 Ibid

Goodlife Store Distribution Goodlife Store Distribution
Source: Company Data, 2023
Goodlife Store Distribution Goodlife Store Distribution
Source: Company Data, 2023

LeapFrog has helped Goodlife to grow its reach and offerings to provide emerging consumers with the access and affordability to make informed health choices.

LeapFrog has played a major role in the company’s transformation from a traditional brick-and-mortar pharmacy to an integrated health hub with dominant market share. On-the-ground experience has helped to reduce the capex cost of new store fitouts, aiding the rapid expansion of the company’s network to 5x the initial footprint. Operations have also been optimised to drive margin improvements, while store break-even time has been reduced substantially.

With LeapFrog’s assistance, the business has strengthened its management team across IT, marketing, retail, purchasing and audit functions. It has also implemented feedback from customer research, renegotiated supplier contracts, revamped its inventory management and refined its rental and store roll-out costs to create a model that is replicable and ready to grow at scale.

Projects completed to date include a redesign of the company’s loyalty program MyGoodlifeClub, in conjunction with LeapFrog’s CX Launchpad. Through the loyalty program, customers can also access doctor consultations at one-third of the average market price.

LeapFrog has recently supported Goodlife in introducing a lower cost brand called Mtaani (meaning “local” in Swahili) to enable direct access to medicine for the lowest income consumers. This work led to Goodlife being recognised in Fortune’s Impact 20 in 2021, a list of the top companies that focus on tackling key social and environmental issues as part of their business model.

In 2022, LeapFrog worked with management to introduce a new investor Eurapharma, a leader in the healthcare sector in Africa.

Page last updated May 2023.