The International Finance Corporation is looking to invest in the healthcare sector in Kenya through a Sh11 billion ($107 million) equity fund based in the Netherlands.
The World Bank’s private lending arm, IFC has revealed that the Investment Fund for Health in Africa (IFHA II) will finance “acquisition and integration of targeted healthcare services businesses in East and Southern Africa.”
The fund is backed by the likes of Pfizer, African Development Bank and European Investment Bank. The fund has also invested considerable amounts in AAR Group, the healthcare provider and CarePay Limited who incepted the M-Tiba platform.
An IFC spokesperson said that funds will be directed towards Kenya, but failed to provide any additional details.
“The Project is expected to increase access to affordable, quality healthcare and specialist services in East and Southern Africa, where there is an undersupply and increasing demand across all income group,” IFC says in its disclosures.
“Through the construction and set up of new clinics and hospitals, this Project will go a long way in increasing and improving the much-needed healthcare infrastructure. The key acquisition targets are in East and Southern Africa.”
IFHA’s first investment in Kenya came in 2010, when Sh750 million was spent to procure a 20 percent stake in the AAR Group.
In 2013, the IFC made a Sh340 million investment in AAR; the IFHA also increased their stake by infusing an unknown amount into AAR.
IFHA is known to invest amounts ranging from Sh75.5 million and Sh1.1 billion, preferably in medicine-related industries.
It also finances firms producing affordable HIV/Aids testing solutions.
AAR currently operates in 3 nations; Kenya, Uganda and Tanzania and will spend at least Sh2.5 billion to put up the new hospital on Kiambu Road with a capacity of over 100 beds.
The firm has 19 branches in Kenya.