KNH seeks Sh17bn from investors in new expansion drive
Kenyatta National Hospital in Nairobi is seeking Sh17 billion in a new expansion bid. PHOTO | FILE
What you need to know:
The Kenyatta National Hospital plans to set up a 600-bed children hospital through public-private partnership (PPP) model.
The Sh5 billion medical facility will give Kenya its first public paediatric hospital.
Also lined up for PPP financing are a 300-bed private unit to be built at a cost of Sh3 billion and staff accommodation houses worth Sh5 billion.
The Kenyatta National Hospital (KNH) has turned to the private sector to raise Sh17 billion in a fresh expansion bid that is set to give Kenya its first public paediatric hospital.
KNH said the equipment to be built through public-private partnership (PPP) model from as early as next financial year includes a 600-bed children hospital to be set up at a cost of Sh5 billion.
At the moment, KNH has a 200-bed capacity children ward which has experienced congestion as it admits about 300 children at any given time.
The hospital’s management is also targeting to raise Sh4 billion for its ICT master plan from the private sector, enabling it to automate all operations and set up a telemedicine centre to improve service delivery.
Also lined up for PPP financing are a 300-bed private unit to be built at a cost of Sh3 billion and staff accommodation houses worth Sh5 billion.
“We have a growing number of patients seeking specialised care at our facility, so we need to expand and develop our infrastructure to serve them well,” KNH chief executive officer Lily Tare said on Friday.
The private sector players who are shortlisted to finance the project will operate them for a specified period of time before transferring them to the hospital.
Ms Tare said the private firms will be allowed to keep 60 per cent of profits generated from the facilities during throughout their period of operation, handing the remaining 40 per cent to the KNH.
Health secretary James Macharia noted that the development and expansion of infrastructure at KNH will also open it up to foreign countries, enabling it to tap on medical tourism.
The health ministry, he added, was already working on a policy to govern medical tourism in the country’s public health centre.
“Not everyone seeking treatment from other countries can afford private hospitals. So we also want to encourage them to come to our public hospitals,” Mr Macharia said.
The PPP model is expected to resolve the financing hitch that has gripped the national referral hospital over the years. The government allocates just about Sh150 million to the facility annually for development initiatives.
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