Moderna announced a halt in its plans to construct a vaccine manufacturing facility in Kenya, citing a significant decrease in demand for Covid-19 vaccines since the pandemic's slowdown.

This decision aligns with Moderna's broader strategy to optimize its production network and reduce costs.

"Moderna has paused its efforts to build an mRNA manufacturing facility in Kenya while it determines future demand for mRNA vaccines on the African continent," 

"The demand in Africa for Covid-19 vaccines has declined since the pandemic and is insufficient to support the viability of the factory planned in Kenya."

The company remains dedicated to research and development, allocating roughly $4.5 billion this year for advancements in various vaccines, including those targeting cancer and respiratory syncytial virus (RSV).

Many of Moderna's mRNA vaccines, such as those in development for HIV and malaria, are in the early stages.

"Moderna believes it is prudent to pause its efforts to build an mRNA manufacturing facility in Kenya," the company stated.

"This approach will allow Moderna to better align its infrastructure investments with the evolving healthcare needs and vaccine demand in Africa."

Previously, in 2022, Moderna pledged to invest roughly $500 million in the Kenyan facility and supply Africa with up to 500 million doses of its mRNA vaccines annually.

Initial plans also included commencing the filling of Covid-19 vaccine doses within the continent as early as 2023.

However, Moderna highlighted a substantial decline in Covid-19 vaccine demand in Africa following the easing of the pandemic, stating they haven't received any vaccine orders from the continent since 2022.

The company additionally reported incurring over $1 billion in losses and write-downs due to cancelled vaccine orders from African nations.