Kazakhstan triples drug procurement savings to 70.5 billion tenge in three years

Savings from state-funded medicine purchases in Kazakhstan have surged more than threefold over the past three years, reaching a record 70.5 billion tenge in 2025. This dramatic increase, from 21.5 billion tenge in 2023, is attributed to a comprehensive overhaul of the procurement and pricing system.

The new framework incorporates efficient supply chain management, optimized logistics routes, and a personalized tracking system for pharmaceuticals. The substantial funds saved have been swiftly redirected to meet additional patient needs as requested by medical institutions.

A key component of the success is a revised pricing model that considers existing warehouse stock held by the single distributor and allows for flexible selection of brand names and dosages. This approach has consistently driven savings upward year after year.

The data shows a clear progression: in 2023, purchasing 1,571 drug items while accounting for existing inventories yielded savings of 21.5 billion tenge. The following year, the scope expanded to 1,596 items, boosting savings to 50 billion tenge.

The peak was achieved in 2025, with the procurement of 1,711 medicine names generating the historic 70.5 billion tenge in budgetary savings.

This reform has also led to significant price reductions for consumers. Under the guaranteed free medical care and compulsory social health insurance systems, maximum drug prices have fallen by an average of 15%. Even steeper declines of around 26% have been recorded in both wholesale and retail markets.