Microsoft partners with Zendawa to digitize independent pharmacies with AI-powered platform

KENYA—Microsoft has partnered with Kenyan health-tech startup Zendawa to deploy an AI-powered platform that is transforming how independent pharmacies across Kenya manage their operations.

The solution addresses critical challenges that have long plagued small and medium-sized pharmacies, including medicine wastage, inefficient inventory management, and limited access to business intelligence tools.

Built on Microsoft 365 Copilot, Power BI, and Microsoft Azure, the platform enables pharmacists to replace traditional pen-and-paper stock management systems with sophisticated digital tools.

Pharmacies can now access predictive analytics, automated reporting, and demand forecasting capabilities that were previously available only to large-scale healthcare retailers.

These tools allow pharmacy owners to optimize stock levels in real-time, track expiry dates with precision, and make data-driven decisions that directly impact their bottom line.

Independent pharmacies serve as a cornerstone of Kenya’s healthcare system, with national health data showing that a significant share of outpatient care begins at community pharmacies or clinics with pharmacies.

Despite their critical role, many of these establishments operate with thin profit margins and rely heavily on manual processes that limit their efficiency and growth potential.

Wilfred Chege, Co-Founder and CEO of Zendawa, explains that the partnership aims to level the playing field for small pharmacy owners.

“By leveraging Microsoft’s AI technologies, we are giving pharmacists tools that help them reduce losses, grow revenue, and operate more sustainably,” he said.

The platform addresses operational inefficiencies that have prevented many independent pharmacies from competing effectively in the healthcare market.

Pharmacists who have adopted the system report tangible benefits across multiple areas of their operations.

Dr. Bramwel Othieno of Ryche Pharmacy noted that expired stock previously cost the business thousands of Kenyan shillings every month.

“With the AI insights, we can now track expiry dates, predict demand, and focus more on patient care instead of manual record-keeping,” he said.

The automated stock-taking feature has eliminated the need for frequent shop closures, allowing pharmacies to remain open longer and serve more customers throughout the day.

Users consistently report reduced levels of expired stock, better visibility into fast-moving medicines, and increased daily sales.

The platform’s demand forecasting capabilities ensure that essential medicines remain available for communities while minimizing the financial losses associated with overstocking or understocking inventory.

Beyond operational improvements, the partnership addresses a critical barrier that has limited growth for small healthcare businesses: access to capital.

The platform digitizes sales and inventory data, enabling pharmacies to build data-based credit profiles.

Lending partners can now assess creditworthiness based on actual business performance rather than traditional collateral requirements, opening new financing opportunities for pharmacy owners who previously struggled to secure business loans.

Since launching in 2023, Zendawa has expanded rapidly across Nairobi and other urban centers, supporting hundreds of pharmacies as they transition from manual to digital operations.

The collaboration with Microsoft demonstrates how global technology companies can support local innovation to address real-world challenges in healthcare delivery and business sustainability.

The Microsoft-Zendawa partnership reflects the growing role of artificial intelligence in strengthening healthcare supply chains and supporting small and independent businesses across Africa.

These pharmacies play a vital role as the first point of contact within the healthcare system, making their operational efficiency essential to overall healthcare access and quality.