CFAO Healthcare, the pharmaceutical arm of the Toyota Tsusho Group, announced the acquisition of 100% of Goodlife Pharmacy, following its 30% minority stake purchase in 2022.
This strategic move, effective immediately after receiving regulatory approvals, strengthens CFAO Healthcare’s ambition to become a comprehensive healthcare provider, controlling the pharmaceutical value chain from manufacturing to patient care.
CFAO Healthcare, a pan-African leader in pharmaceutical distribution, operates in 24 African countries and 6 French Overseas Territories, supplying medicines to over 11,000 pharmacies daily through its Laborex network.
The acquisition of Goodlife enhances CFAO’s retail presence, leveraging Goodlife’s trusted brand and extensive network to ensure secure access to high-quality medicines and wellness products.
Goodlife Pharmacy has grown from a modest 19 stores in 2017 to an impressive network of nearly 150 outlets across Kenya and Uganda, serving over 2 million patients annually.
The Rise of Goodlife Pharmacy: Redefining Healthcare Access
Founded in 2014 as Mimosa Pharmacy, Goodlife Pharmacy quickly emerged as a pioneer in East Africa’s healthcare sector.
By 2017, when LeapFrog Investments acquired a controlling stake for KSh 2.2 billion, Goodlife operated just 19 stores.
Today, with nearly 150 outlets, the company has transformed into an all-encompassing health hub, seamlessly integrating in-store pharmacy services, diagnostics, telemedicine, e-commerce, and home delivery.
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This innovative model has made high-quality healthcare accessible to over 2 million patients annually, particularly in underserved communities.
Goodlife’s Mtaani brand, meaning “local” in Swahili, targets low-income consumers earning $2–10 per day, addressing critical healthcare gaps in Kenya and Uganda.
The company employs over 500 professionals and offers trusted pharmaceuticals, over-the-counter medicines, beauty products, personal care items, and digital services, setting a new standard for retail healthcare in East Africa.
Key milestones in Goodlife’s journey include:
- 2017: LeapFrog Investments acquires a majority stake, fuelling rapid expansion.
- 2019: A $3 million (KSh 309 million) injection from LeapFrog to open new outlets.
- 2021: Recognition in Fortune’s Impact 20 for addressing social and environmental challenges.
- 2022: CFAO Healthcare acquires a 30% stake, marking LeapFrog’s first partial exit.
- 2025: CFAO Healthcare completes a 100% acquisition, effective July 29, 2025, after regulatory approval from the COMESA Competition Commission.
This growth has solidified Goodlife’s position as East Africa’s largest private pharmacy chain, shaping how healthcare is delivered in the region.
LeapFrog’s Impact: Driving Growth with Purpose
LeapFrog Investments, a global leader in impact investing, played a transformative role in Goodlife’s expansion through its “Profit with Purpose” philosophy.
Since its 2017 investment, LeapFrog has supported Goodlife in scaling from 19 to nearly 150 stores, a nearly eightfold increase.
The firm optimised operations, reduced store setup costs, and strengthened management across IT, marketing, retail, purchasing, and audit functions, enabling Goodlife to serve diverse communities effectively.
LeapFrog’s strategy also empowered Goodlife to evolve beyond traditional pharmacy services, offering diagnostics, vaccines, medical consultations, and nutritional advice.
This holistic approach addresses critical health challenges in East Africa, where communicable diseases like HIV, tuberculosis, and malaria account for 54% of deaths, and non-communicable diseases are projected to dominate mortality by 2030.
The Future of Goodlife Pharmacy
CFAO Healthcare’s acquisition aligns with Goodlife’s goal of operating over 250 stores by 2025, reaching 8.5 million people, half of whom earn $2–10 per day.
The company plans to expand into new markets, including Tanzania and parts of Southern Africa, capitalising on Kenya’s growing pharmacy market, projected to reach KSh 156.2 billion in revenue by 2025 and KSh 188.4 billion by 2029 (4.66% CAGR).
Goodlife will continue to prioritise underserved populations through its Mtaani brand and partnerships with local Kenyan manufacturers to boost demand for locally produced pharmaceuticals.
CFAO’s expertise in supply chain management, built on decades of operating the strongest pan-African pharmaceutical network, will ensure a reliable supply of high-quality medicines, addressing challenges like counterfeit drugs.
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Why This Matters for East Africa’s Healthcare Ecosystem
Goodlife’s journey reflects the growing demand for accessible, affordable, and high-quality healthcare in East Africa.
The acquisition positions CFAO Healthcare to drive competition and innovation in a pharmacy market poised for significant growth.
LeapFrog’s exit, the largest private equity-led retail pharmacy exit in Sub-Saharan Africa (excluding South Africa), underscores the potential for impact-driven investments to deliver both social impact and financial returns.
By integrating retail into its pharmaceutical value chain, CFAO Healthcare ensures greater control over the supply and distribution of essential medicines, enhancing patient outcomes across the region.
Goodlife’s omnichannel model, combined with CFAO’s logistical expertise, sets a new benchmark for healthcare delivery in Africa.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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