Kenyatta National Hospital (KNH) is set to construct a 300-bed private block to offer healthcare services provided by top hospitals like Nairobi and Aga Khan.
The seven-storey building, whose feasibility study is being undertaken by Earnst & Young, is the first healthcare public private partnership (PPP) project in Kenya where investors build and own a facility for a number of years to recover their costs and make profit before transferring it to the State.
The referral hospital operates a private wing that occupies two floors at its main block, charging patients Sh4,000 per day while its public wards charge Sh800.
“A build-operate-transfer PPP where the private party finances, constructs, operates and maintains the envisaged seven-storey building to house hospital,” reads the Kenya PPP programme status report of June 2018.
The feasibility study is conducted under a joint venture between Earnst & Young LLP (Kenya) and a consortium including Earnst & Young LLP (India).
The Treasury is overseeing the implementation of the programme geared towards strengthening private sector participation in the country’s infrastructure development.
According to the report, construction of the block is targeted at reducing patients’ need for travel out of the country for treatment. Kenya has a relatively poor public health infrastructure plagued by acute shortage of doctors, a lack of essential drugs and medical equipment.
This is coupled with inability of poor patients to afford healthcare in expensive private hospitals. The facility is set to save the economy billions of shillings that Kenyans spend abroad on specialised treatment.
The deal comes on the backdrop of a multi-billion shilling pact between Kenya and India to build East Africa’s biggest cancer hospital. The deal, inked in July 2016, placed healthcare at the centre of diplomatic relations between the two countries.
The hospital is expected to offer radiotherapy, chemotherapy, advanced surgery and bone marrow transplant services.
According to a PPP programme status report, KNH further intends to construct 2,000 housing units on a 10 hectare piece of land it owns off Mbagathi Road.
The project, which includes a shopping complex and a training centre, is at the proposal stage.