Co-op Bank has partnered with the International Finance Corporation (IFC) to offer loans to healthcare businesses at more favorable terms. The businesses including clinics, hospitals, and laboratories with a maximum of 300 employees will access up to 90 percent asset financing of up to Sh200 million. The deal signed under IFC’s Africa Medical Equipment Facility seeks to offer the small and medium-sized healthcare businesses local currency loans for purchase or lease of medical equipment. The post-pandemic recovery needs to be supported at all levels within the health sector. The financed asset will be the primary security and all risk insurance cover will be provided through Co-op Bank Bancassurance.
The repayment period for loans accessed under the scheme extends to 60 months as opposed to the usual 36 months, while the interest rate is at 10 percent compared to the banking industry’s average of 12.1 percent. Under the scheme, the global financier has also partnered with original equipment manufacturers and the Kenya Healthcare Federation to provide training on purchase of vital medical equipment for the businesses. Philipps, GE Healthcare and Karl Storz are the initial participating medical equipment manufacturers, with plans to include more vendors in the year. Training of the healthcare SMEs will enable them to navigate the planning, budgeting, and procurement process to access advanced medical equipment they need to serve patients. The training program is supported by the Government of Norway.