Over the years, the Co-operative Bank of Kenya has worked tirelessly with like minded partners towards the realization of good healthcare services in the country by offering affordable and readily available loans to healthcare service providers with the aim of purchasing medical equipment.
This is evident as recently, Co-op Bank entered into partnership with the International Finance Corporation (IFC) to offer loans to healthcare businesses at more favourable 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,” said Amena Arif, IFC Country Manager for Kenya during the launch of a small business training programme under Medical Equipment Facility.
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.