Makueni - PPP for Primary Care

Who is our client

DA funds are used to co-finance the feasibility phase of the project being undertaken in three primary healthcare facilities by Amref Flying Doctors and Philips Medical Systems B.V. in Makueni county in Kenya.

Funding objective

The goal of the project is to demonstrate that the outsourcing of the management of public primary healthcare facilities to the private sector leads to better health results. FMO is the financial co-developer for the consortium formed by Amref and Philips and provides a specific focus on the bankability of the project. During the feasibility phase, which lasted from July 2018 until January 2020, it was proven that better quality and more healthcare was provided in the catchment area of the three clinics and community engagement had substantially improved.

In the meantime, encouraged by the results of the feasibility phase, the scale-up phase is under preparation. The consortium of Amref and Philips will be expanded by one or two impact investors that will take over the management of the 233 primary healthcare facilities in Makueni under a public-private partnership based concession agreement. In 2019 the project evolved to a stage where the scale-up across the county is seen as a pilot for achieving universal health coverage throughout the whole country.

The involvement of Philips for the design of the clinics and the delivery of healthcare equipment was essential for the successful achievement of the first phase of the project.

In 2020 the consortium will hire a Public-Private Partnership (PPP) advisor that will assist in the preparation of an investment proposal to the PPP unit in Kenya. Depending on the approval process, the implementation is expected to commence in 2021.

Why we fund this project

Through the project, the 1 million inhabitants of Makueni county will have access to universal health coverage. It will also involve the implementation and testing of a model for further roll-out across Kenya and across the continent.