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In 2008 OTC Healthcare in Kenya maintained steady retail value growth despite a poor start early in the year due to post election violence when many businesses temporarily ceased trading, many business premises were looted and transportation was halted, which thus led to a slow down in retail value sales over the first quarter of the year. However, the situation changed once a governmental coalition was formed, resulting in peace and thus enabling retailers to commence trading. By the end of 2008 the majority of companies affected had recovered their losses. In addition to the high cost of raw materials, rising inflation and the high cost of fuel led to increases in production costs for manufacturers in OTC Healthcare in 2008. Most companies considered importing medicinal products from other countries in order to reduce their operational costs. In some cases, for example Reckitt Benckiser East Africa Ltd, the high cost of production prompted companies to cease their manufacturing operations in Kenya. OTC Healthcare is expected to experience a slow down over the forecast period, which is expected to be attributable to further increases in inflation and also production costs, which in turn will hamper volume demand. The cost of raw materials increased over the review period and is expected to increase further over the forecast period as a result of which more companies are expected to potentially cease production activities in Kenya.