Saturday, November 23, 2013

Equity injection buoys hospital's expansion bid

Nairobi Women’s Hospital: Foreign PE’s interest in Kenya has been rising steadily. Photo/ANTHONY KAMAU

Nairobi Women’s Hospital: Foreign PE’s interest in Kenya has been rising steadily. Photo/ANTHONY KAMAU 

By ARTHUR SITUMA
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Nairobi Women’s Hospital is set to open branches in Mombasa and Kisumu after it partnered with two foreign investors in a multimillion equity investment agreement.

The Sh559 million ($6.5 million) partnership between the hospital, Swedfund and Abraaj Group is set to increase health care access, affordability and quality at the hospitals current branches and their underway local expansion programs.

The investment will also assist the hospital in its grand plan to expand regionally into the East African region in the near future according to Eva Muraya the hospital’s board of directors chairperson.

The government through the principal secretary at the ministry of health Prof Fred Segor lauded the collaboration saying it will make sure an excellent environment is provided in the quest of improving healthcare provision in the country.

“I would like to commend organisations in the health sector whose quality products and monetary support have assisted in both private and public health care provision,” said Segor during the agreement signing at the hospital grounds in Nairobi.

The partnership is the highest one-off foreign direct equity investment in private health care in the country this year.

The Hospital in 2011 opened a medical training college and a new Branch at Ongata Rongai using the Sh260 million cash injection by Africa Health Fund, a private equity financier.

Hospitals in the country are witnessing increased interest by Private Equity firms as demand for health services continues to rise occasioned by the increasing number of Kenya's middle class in search for better quality health services.

The Swedfund and Abraaj Group support private enterprises in developing countries through equity investment and loans to specific organisations with profitable track record and need capital to grow.

The investment agreement was signed by Shakir Merali Managing Director Abraaj Group, Henrik Nordlander Investment Manager Swedfund Regional Office and the hospitals CEO Dr Sam Thenya at the hospital on Friday evening.

Nairobi Women’s Hospital currently has six branches in the country which provide specialized medical services for women and a Gender Violence Recovery Center GVRC which offers free medical and psychosocial support to survivors of intimate partner violence.

The branches include; three hospitals in Hurligham, Adams, Ongata Rongai and Nakuru with two medical centers in Kitengela and Eastleigh.

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