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ABSTRACT
This study was undertaken to determine the factors that influence the pricing of medicines in Nyeri County. The specific objectives of the study were to determine the effects of ordering costs, purchasing policies, lead times and buyer-supplier relationships on the pricing of medicines in Nyeri County. The study reviewed several literatures in line with pricing of medicines. These reviews equipped the researcher with adequate information in this area of study. The review also helped in identifying gaps in the previous scholary work. This study aimed at filling in these gaps in order to come up with a detailed insight of the factors that influence the pricing of medicines in Nyeri County. The research design adopted was a survey of pharmacies in Nyeri Town. The findings were a good representation of the real situation. The survey design which was considered best for it, was a scientific method which involved observing, describing, recording, analyzing and reporting conditions that existed without alterations. It was used to obtain pertinent and precise information concerning the current phenomenon and where possible, to draw valid general conclusions from the facts discovered such as the fact that the respondents unanimously agreed that ordering costs, purchasing policies, lead times and buyer-supplier relationships affected the pricing of medicines in any healthcare facility. The researcher used an appropriate stratified random sampling technique and the use of questionnaires to retrieve primary data. This method was best suited to systematically give an in-depth analysis of the situation. The study sampled 12 procurement officers in randomly selected pharmacies in Nyeri Town. The data collected was analyzed using quantitative and qualitative techniques. The findings were that the majority of respondents indicated that ordering costs moderately affected the pricing of medicines in pharmacies in Nyeri Town, the majority of the respondents also felt that purchasing policies slightly affected the the pricing of medicines in pharmacies in Nyeri Town, the majority of the respondents also indicated that lead times do moderately influence the pricing of medicines in pharmacies in Nyeri Town and that the majority of the respondents also indicated that buyer-supplier relationships moderately affected the pricing of medicines in pharmacies in Nyeri Town.