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Gachago M. S. - Masters of Business Administration, Kenyatta University, Kenya

Dr. Njuguna J. W. - School of Business, Department of Business Administration, Kenyatta University, Kenya


The study aims at establishing the factors that determine stock outs in retail pharmacies. Stocks held inside a business are dictated by different variables. These variables are particular to retailer, store, class and the commodity. Private drug stores have a tendency to have better accessibility of commonly used pharmaceuticals. Quality affirmation is however an issue in some of the privately owned businesses. The overall purpose of this research was to identify the key drivers of medicine stock out in private local pharmacies in the sub-county of Lang'ata, Nairobi City County, Kenya. The specific objectives were; to establish the influence of product shelf life, product unit price, product prescription frequency and stage at the product life cycle on stock outs of medicines in private retail pharmacies in Lang’ata sub-county, Nairobi City County, Kenya.The study was anchored on agency theory and Neoclassical distribution theory. Descriptive research design was used in the study. The population was 77 registered private pharmacies. Out of these, 64 questionnaires were properly filled and returned. This represented an overall successful response rate of 83.12% thereby confirming the validity and reliability of the tool. Quantitative data was gathered using questionnaires. Analysis was done using both descriptive (mean and standard deviation) statistics and inferential (binary logistic regression) statistics. Data was presented using tables and graphs. Through content analysis, qualitative data was analyzed. Outcomes showed that product shell life, product prescription frequency, product life cycle and medicine stock out are negatively and significantly related. However, product unit price and medicine stock out are positively and significantly related. From the findings, the study concluded that the product shelf life, product prescription frequency, product unit price and stage at product life cycle had a significant effect on medicine stock out. The study also concluded that most pharmacies only accept goods whose shelf life is short when they have a ready client. From the study it showed that stock out situations will always emanate from the fear of keeping products which expires after a very short period of time. Moreover the study concluded that the pharmacy suppliers requested confirmation for placing an order to restock a product whose unit price has increased. Based on this, the study concludes that the pharmaceutical companies try to produce products which have long shelf-life. The policy makers should utilize the findings to outline policies on medicine stock outs. They are also in position to apply these findings in the formulation of policies viable in addressing medicine stock out challenges. This can be done in relation to regulation of the factors which pose as a threat to medicine stock, an example being product unit price.

Full Length Research (PDF Format)