Sidian unveils Sh2b fund for SME hospitals

Tier three lender Sidian Bank is targeting small and medium- sized hospitals and clinics with a Sh2 billion kitty in a move that seeks to improve quality of the medical sector in the country.

Sidian Bank has partnered with Medical Credit Fund to provide credit facilities to improve cash flow for over 2,500 private hospitals in the country.

Speaking during the signing of the partnership agreement, Sidian Bank Chief Executive Officer Titus Karanja said small private hospitals and clinics grapple with cash flow challenges that limit the services offered to patients.

“Many small and medium-sized clinics struggle to access working capital, infrastructure finance, purchase modern equipment or even pay for basic repairs of their medical equipment. There is need to help them build a financial track record, become bankable and improve the quality of their healthcare services,” Mr Karanja said.

Following its brand change from K-Rep Bank, Sidian has been on an aggressive campaign to build up its SME business portfolio. The bank recently unveiled a new corporate structure that will see it focus on enterprise, corporate and institutional banking as it seeks to grow its customer base.

The credit facility will see private medical service providers access funding of between Sh100, 000 and Sh250Million to enable them improve on their operational efficiency.

Mr Karanja said that the medical service providers will also obtain technical assistance in a bid to improve on quality and value of the medical facilities

“The medical credit fund has undertaken to equip the beneficiary entrepreneurs with technical assistance towards building a financial track record to improve the quality of their healthcare services,” he said.

The Medical Credit Fund was set up as the first and only dedicated social program, providing loans to private healthcare providers in partnership with local banks.

Through such partnerships, banks have a low-risk entry while helping healthcare providers to meet conventional bank requirements, as the loans offered are combined with technical.

Reporting by Beatrice Eghwa