Sidian Bank and the Medical Credit Fund (MCF) have announced a Ksh4 billion medical financing agreement in support of private healthcare service providers in Kenya.
The partnership will see up to 2, 500 private medical service providers receive loans at competitive rates and flexible terms and conditions. The loans between Ksh100, 000 to Kshs250 million will be towards the purchase or maintenance of medical equipment and expansion of facilities.
“Today, many small and medium-sized clinics struggle to access working capital, infrastructure finance, purchase modern equipment or even pay for basic repairs. We are living out our brand promise of enabling entrepreneurs create wealth through provision of transformational financial solutions,” Sidian Bank’s CEO Titus Karanja said.
The third-tier bank which recently rebranded from K-Rep Bank has since been on an aggressive campaign to build-up it SME business portfolio.
The MCF is a social impact fund that enables health SMEs in sub-Saharan Africa to access affordable finance to improve the quality of their healthcare operations. It also provides technical assistance to expand and invest in the same.
The Netherlands-based organization has facilitated business and quality training for over 1, 200 clinics and disbursed approximately 850 loans totalling more than $15 million across the African countries it operates in.
Bart Schaap, Finance Director, MCF added, “We have shown that investing in health is a solid investment and look forward to intensifying our efforts”.
With only 35 per cent of healthcare provided by private hospitals, investing in the sector will have an enormous impact in addressing the needs of private healthcare entrepreneurs in Kenya.
The facility will be available to a wide range of stakeholders in the healthcare provision value chain from clinics, hospitals, diagnostic centres, pharmacies; to health care training institutes, private nursing schools; and suppliers to the health sector, distributors of medical equipment and technology, distributors/wholesalers of pharmaceuticals and medical supplies.
Sidian Bank and MCF will each contribute Kshs2 billion in the deal.
The program will go for a period of three years. It began on a pilot basis in 2010 attracting up to 400 medical service providers and disbursing loans amounting to Kshs700 million.