Avenue Group gets Ksh.1.7 billion investment from IFC for local expansion

Avenue Group on Tuesday announced a Ksh.1.7 billion ($12.7 million) investment from the International Finance Corporation (IFC) towards growing its healthcare offering and boosting its patient reach across the country.

The healthcare provider said it seeks to upgrade its existing three hospitals and 13 clinics with the loan, as well as launch new facilities to expand its offerings over the next five years.

“We are excited about the next phase of our expansion strategy that will enhance our facilities and operations for patients and practitioners and continue to improve the country’s healthcare system. We are proud that IFC has recognized the role of Avenue in the Kenyan healthcare ecosystem, and we look forward to working together with their team to deliver more for our patients,” Avenue Group CEO Imran Osman said.

On its part, the global financier said the money will see Avenue invest in, among others, radiology and state-of-the-art operating theatre equipment across its hospitals, as well as the setting up of new clinics.

“IFC’s role in the healthcare sector is to complement government efforts to leverage the private sector to help meet the growing demand for quality healthcare. Our investment in Avenue will increase the availability of healthcare at state-of-the-art facilities across Kenya, enabling more people to get the primary and advanced care they need,” said Amena Arif, IFC Country Manager for Kenya.

Avenue Group is owned by the American private equity fund group Evercare Group Fund, which is an integrated healthcare delivery network operating in Africa and South Asia.

In addition to Avenue Hospital, the fund has also invested in Nairobi Women’s Hospital, Metropolitan Hospital and Ladnan Hospital. 

Kenya’s private health sector has in recent years been an attraction to private equity firms due to high growth potential and attractive returns fuelled by a high demand from Kenyans seeking alternatives to unreliable government facilities.