Local medical imaging firm signs Sh80m leasing deal

Sonar Imaging Centre signed a six-year contract for modern medical equipment, among them computerised tomography (CT) scans.PHOTO: COURTESY

A local medical imaging centre has signed a Sh80 million equipment leasing agreement with RentCo East Africa.

Sonar Imaging Centre signed a six-year contract for modern medical equipment, among them computerised tomography (CT) scans.

In the arrangement, Sonar will pay a fee over time, enabling it to free up cash that would have been tied up if the firm had opted for outright purchase of the equipment. Sonar can then use the so-freed-up cash to acquire other assets.

Sonar Chief Executive Kenneth Musyoki said the leasing arrangement would enable his firm to roll out more medical services. “If we can do this without owning the equipment, which ties down a lot of needed working capital, we can grow the business model to other parts of the country quicker,” Musyoki said.

Leasing is a standard asset financing method used globally but much less utilised in Kenya. Medical equipment have a shelf life and technical obsolescence is a huge risk factor to business growth, he added.

RentCo’s Chief Operating Officer Henry Emuye said medical equipment are technology solutions that depreciate quickly, buying them limits a healthcare facility’s risk of getting caught with out-dated equipment. “It is of major significance that we now lease equipment for the healthcare sector,” Emuye said.