Use of Blockchain Technology in Pharmaceutical Supply Chain - a Case Study of Nairobi County

Abstract

The use of substandard, unregistered and falsified pharmaceutical drugs does not only endanger health, promote spread of antimicrobial and drug-resistant infections but also undermines confidence in health professionals and health systems. Blockchain technology, with its distributed ledger and smart contract features, has the potential to address these challenges. Blockchain uses a digital ledger technology that securely records and stores transactions of data across computer systems. This research proposed a conceptual framework for assessing the adoption of blockchain technology in the pharmaceutical supply chain in Kenya. The study focused on the development of a blockchain system and the evaluation of its adoption, using the Technology Acceptance Model. This paper examined how blockchain can be used to increase transparency and accountability in the pharmaceutical supply chain distribution. Specifically, the study sought to establish the technical enablers for achieving provenance, transparency, and traceability by examining how hyperledger fabrics in blockchain can address confidentiality, integrity and authentication of data. Additionally, the project highlighted the perceived usefulness and perceived ease of using blockchain in the supply chain. The paper further discussed the drivers that enhance pharmaceutical organisations’ attitude to adopt blockchain and assessed the respective adoption challenges. The paper concludes by recommending further research to assess the feasibility and effectiveness of using blockchain to enhance traceability in drug supply chain management, mitigate fraud and enhance the adoption of blockchain technology in the pharmaceutical industry in Kenya.