For Immediate Release
NAIROBI – The U.S. Agency for International Development (USAID) and GE, in conjunction with Kenya Commercial Bank (KCB), today announced a new partnership that will make up to $10 million in local financing available to small and medium enterprises for the development of private health facilities, including small clinics, diagnostic centers, and hospitals in Kenya.
This first of its kind transaction was designed in response to the lack of local credit for health facilities in Kenya to purchase much needed medical and diagnostic imaging equipment. The risk-sharing agreement with USAID will allow KCB to take additional lending risks for clients in the health sector seeking to purchase GE equipment, including products manufactured in the U.S. The partnership marks the first time that a Development Credit Authority facility was established directly with the support of a multinational company.
"USAID's new partnership with GE falls in line with the Agency's shift towards engaging and leveraging the private sector, and embracing a new model of development that can be replicated across sectors and geographies," said USAID Administrator Rajiv Shah.
Under the program, qualifying healthcare providers will have the opportunity to access more favorable financing through improved risk-sharing, training, and services. Advantages include longer loan terms, competitive interest rates, and small upfront capital investments.
"GE is proud to partner with USAID and the Kenya Commercial Bank in the development of an innovative financing solution, launched globally for the first time here in Kenya, aimed at increasing access to affordable and quality healthcare," said Jay Ireland, President and CEO, GE Africa."GE is committed to working with both public and private sector partners alike through the localization of its capabilities and medical technologies to support expansion of essential health services in Kenya, as outlined in its Vision 2030 plan."
Last updated: March 04, 2014