AAR Healthcare to shut Tanzania business
News
By
Wainaina Wambu
| Apr 06, 2021
AAR Healthcare Ltd has began the winding-up process of its Tanzania business citing financial difficulties.
This comes just after the Kenya business recorded a 55 per cent drop in performance for the year ended December 2020, attributed to high claims due to Covid-19.
In a memo to staff, AAR Healthcare Tanzania Ltd Acting CEO Andrew Rowell said the firm has been facing financial difficulties “for some time” now worsened by the failure of the NHIF model in Tanzania, the pandemic and a decline in traffic to their clinics.
“The Company’s parent, AAR Healthcare Limited as a major creditor to the company, is no longer willing to support the financial requirements of the company and it is on this basis that the Board of Directors has resolved to initiate a creditor’s voluntary winding up process,” he said.
READ MORE
From Boeing cockpit to truck seat: Building Africa's logistics backbone
France says G7 finance talks 'frank, sometimes difficult'
Africa banks on continental trade agreement to rev up investments
How 300 containers were stolen from Mombasa port
800 youth benefit from 'Glam on Wheels' Initiative
Flower industry loses Sh200m as transport strike hits JKIA cargo
Families feel the pinch as war-hit diaspora remittances shrink
Legal battle brews over new tea levy, directorship
For Africa to move forward, Africans must be allowed to cross borders
Global housing crisis deepens despite policy gains - UN warns
A creditors meeting will be conducted on April 22, to formally appoint a liquidator.
Rowell told staff business operations would continue as normal pending the creditors meeting and their employment contracts would not be interfered with.
“I wish to thank you personally for your loyalty to the company and sincerely regret that the creditors are being forced into the pending action. It is certainly not due to the fault of our employees’ effort but mainly the economic environment,” said Rowell.
AAR started its operations in 1984 solely doing medical evacuations by road and air and has since become giant health insurance across East Africa. It operates over 28 clinics in Kenya, Uganda and Tanzania serving over half a million outpatients annually.