Cheap loans for SMEs in new pact
Medical equipment manufacturer GE Healthcare has teamed up with Medical Credit Fund (MCF) to provide small health facilities access to affordable equipment financing.
The announcement was made during a recent meeting of radiologists in Nairobi organised by GE Healthcare and the Kenya Association of Radiologists.
Under the partnership, PharmAccess Groups’ MCF will provide eligible healthcare providers access to mobile-based lending and business improvement programmes.
GE Healthcare will, on the other hand, provide equipment and technical support. Borrowers will under the partnership will secure up to $100,000 (Sh10 million) with a 24 month repayment plan.
The partnership comes at a time when the country’s healthcare system is in a deplorable state owing to limited resources.
For instance, the small and medium enterprises (SMEs) that serve lower income groups often operate under dilapidated infrastructure, equipment and a biting shortage of skilled medical staff.
“Despite demand and obvious need, health SMEs have difficulty accessing capital to improve this situation. This is because of the perceived high investment risk due to lack of banking history and limited collateral,” said GE Healthcare East Africa head Andrew Waititu. PharmAccess Foundation Kenya Director Isaiah Okoth said the partnership was, therefore, a significant step towards changing the status quo.
“There is a case for innovative financing models and technical support to healthcare SMEs to enable them to grow and improve the quality of healthcare service,” he said. Mr Okoth said through such initiatives, firms would be able to support the achievement of universal healthcare coverage.
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GE HealthcareMedical Credit FundKenya Association of Radiologists