KCB, General Electric target private clinics with Sh850m credit scheme
A patient undergoes CT-scan imaging at a private hospital in Nairobi. Photo/Diana Ngila
What you need to know:
Plan aims to aid small medical firms to buy modern equipment at interest rates of up to 15pc.
Upcoming private clinics are set to benefit from a Sh850 million credit line aimed at improving the quality of services at health centres.
KCB will extend the loans to small and medium sized enterprises to buy medical equipment and accessories from General Electric, a US conglomerate. The credit line under the Open Health Financing Programme is sponsored by the USAid.
KCB Group chief executive Joshua Oigara said lenders often perceived healthcare as a risky market and imposed stringent conditions for investors seeking to expand operations.
He said the loans would attract interest rates of up to 15 per cent, with borrowers required to raise a tenth of the principal they seek upfront.
“Clients will also enjoy a one-year grace period before they begin repaying the loan within three years,” said Mr Oigara.
“We are not going to be asking for things like title deeds here because the equipment will serve as security.”
General Electric’s Jeff Immelt said the loans would help private hospitals to buy modern diagnostic and treatment facilities such as CT-scans, MRIs, ultrasound, X-rays and dialysis machines.
“This will improve lives of patients and complement government efforts aimed at providing quality healthcare for all Kenyans,” he said.
Lifestyle diseases among Kenyans such as diabetes, cancer and heart disease are on the rise but a lack of adequate or affordable healthcare force patients to seek treatment abroad or bear with long waiting lists at public referral hospitals.
Out of 28,000 patients diagnosed with cancer annually, 22,000 die mainly due to lack of timely treatment because chemotherapy and radiotherapy machines are only found in less than one per cent of government facilities.
The credit facility will run for nine years with USAid mission director to Kenya Karen Freeman saying the partnership could be renewed depending on success.
“Our idea is to reach a level of sustainability where the private sector will no longer need to rely on USAid to invest in health care facilities,” said US Ambassador to Kenya Robert Godec.
Mr Immelt later held talks at State House with President Uhuru Kenyatta who pledged transparency in undertaking mega projects.
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