Multi-million oxygen plant in Kilifi to employ 3,000 people

An employee of Synergy Gases Limited supervising medical oxygen tanks at Kokotoni area in Kilifi County. [Nehemiah Okwembah, Standard].

The construction of two mega medical oxygen plants at the cost of Sh2.8 billion in Kenya and Tanzania by MedAccess has begun. It was not clear how much each plant will cost.

The project is funded by the Japanese and Canadian governments through MedAccess, Unitaid, and the Clinton Health Access Initiative (CHAI).

According to MedAccess Chief Executive Officer Michael Anderson, the project is Africa's first regional initiative to increase the availability of medical oxygen.

He said that the organisation's focus was to support country-led approaches to increase production of medical liquified oxygen.

"Medical oxygen is a life-saving tool that is too often unavailable when patients urgently need it. MedAccess is pleased to bring a powerful, innovative financing solution to help boost local production of liquid oxygen, which can then be provided at stable prices.

"Working with the EAPOA partners, we are committed to supporting country-led approaches to increase access to this essential medical product," he said.

Synergy Gases Limited will provide medical oxygen to public and private hospitals across Kenya at or below a negotiated ceiling price once production begins later this year, and MedAccess will make a payment to Synergy Gases Limited if sales fall below agreed volumes, giving the company confidence to invest in reliable supply chains and price medical oxygen affordably.

"We are honoured to be part of this transformative agreement with MedAccess, which aims to expand access to life-saving medical oxygen throughout East Africa, and our new facility in Kilifi County is a significant milestone in ensuring regional oxygen security and aligns with the EAPOA goal. We are grateful for the strategic support provided by CHAI and Unitaid. Their partnership has been instrumental in making this vision a reality," said Paras Pandya, Managing Director of Synergy Gases Ltd.

The Kilifi facility is also expected to create 3,000 jobs and 1,000 indirect jobs in Kilifi and Mombasa counties and will focus on producing both industrial and medical gases aimed at serving key sectors, including manufacturing firms, healthcare institutions, laboratories, and research organisations.

"Each cylinder of oxygen produced will contribute to saving lives, whether it is a newborn, a mother in labour, or a patient undergoing surgery, or somebody who has a respiratory illness, and the plant will create 3,000 direct jobs and 1,000 indirect jobs," said Pandya.