Family Bank sets aside Sh1.3bn for healthcare SMEs

Family Bank has set aside Sh1.3 billion for micro and small enterprises in the health sector to ease their cash flow at a time when the coronavirus has hit hospitals.

The five-year lending plan in partnership with East African healthcare consultancy Wellwise Solutions, targets more than 2,000 private and faith-based medical facilities.

Family Bank chief executive Rebecca Mbithi said the fund provides a reliable financing and repayment plans to suit private health sector amid tough economic times.

“Our main aim is to ease access to capital for private healthcare entrepreneurs hence promoting the provision of quality essential healthcare services, acquisition of new technology as well as employment opportunities within the sector,” said Ms Mbithi.

The businesses will access credit to procure medical equipment, pharmaceuticals and non-pharmaceuticals, working capital, hospital construction and infrastructure development.

Research shows small enterprises face challenges such as location and infrastructure expenses (35 percent), equipment and technology costs (30 percent) and manpower and working capital spending (15 percent). Wellwise Solutions founder Stephen Njuguna said the funding eases the negative impacts of the coronavirus.

“At the hospital level, access to financing means that facilities will be properly equipped, with adequate infrastructure, medicines and staffing, enabling Kenyans to enjoy more accurate diagnostics and overall improved quality of healthcare services,” said Mr Njuguna.

He said access to affordable healthcare financing would aid private healthcare providers to offer reliable, timely, cost-effective and sustainable healthcare services.

“This will result in improved quality of healthcare services, ultimately accelerating the momentum towards Kenya achieving Universal Health Coverage,” he added.

This comes at a time when a study commissioned by Senate showed that Kenya has nearly 300 ventilators with a critical shortage of oxygen. Most Covid-19 patients who need critical care also require a ventilator.

For instance, out of the 518 intensive care unit beds in the country, 90 percent are in use, putting the country at risk as the World Health Organisation says Africa could be the next epicentre of the virus.