Zenith becomes first beneficiary of new healthcare financing deal

Dr Jackton Wanga has become the first private practitioner to benefit from a new financial partnership between Kenya Commercial Bank (KCB), American conglomerate General Electric (GE) and development agency USAid.

The partnership is part of a deal that will see GE and KCB partner to finance private health facilities in Kenya to the tune of $10 million (Sh910 million).

Through the programme, Dr Wanga, the proprietor of Zenith Medical Centre, acquired the Voluson P8 ultrasound machine worth Sh4.5 million that has among its features 2D image quality and 3D capabilities.

The KCB-GE-USAid programme catered for 80 per cent of the purchase price, with the doctor meeting 20 per cent of the cost.

It was a first of its kind transaction, with the programme designed to respond to the lack of credit for health facilities in the country, despite increasing demand for medical and diagnostic imaging services.

The risk-sharing agreement will allow KCB to take on additional lending risks for clients in the health sector seeking to purchase GE equipment.

High risk

Wanga, who is a vascular and interventional radiologist, said most doctors in private practice find it difficult to access credit to purchase medical equipment, as lenders consider their line of business a high risk one.

“For many medical practitioners in Kenya, getting financing to purchase medical equipment is a perpetual headache. Financial institutions are often reluctant to lend to doctors, especially those who operate as SMEs,” he said.

Unlike major hospitals with a high turnover of people seeking diagnostic services, Wanga added, financial institutions fear the long period it takes for private clinics to see returns on the massive investment required to purchase equipment.

“Healthcare financing is very vital for the growth of the health sector in Kenya and the Government should encourage lenders to get deeper into the medical field. With a little education on how financing works, more people would be willing to take loans to finance their clinics.”

The Government last week also signed Managed Equipment Service (MES) contracts to plug the gaps in the provision of and access to diagnostic services.

Under these agreements, the State will equip two hospitals in each county and four referral hospitals with state-of-the-art theatre, laboratory, ICU, dialysis and imaging equipment.

The MES project leases and outsources installation and maintenance of medical equipment to third-party companies, minimising hospitals’ expenditure.

[e-mail]