TWO US institutions have partnered with a local bank to launch a pilot healthcare credit finance facility they said would gradually phase out heavy donor component in the under-funded health sector. The Sh859.2 million($10 million) facility unveiled yesterday in Nairobi targets small and medium enterprises with loans to buy costly medical equipments.
The credit line is a partnership of largest lender by asset value KCB, US-owned global medical technology giant GE Healthcare and federal government-funded US agency for international development. It allows small private healthcare businesses like hospitals, clinics and diagnostic centres to access loans from KCB at less two per cent the prevailing base lending rate to buy equipment from GE while USAID provide a partial risk guarantee. USAID's associate administrator Mark Feierstein said the model would lay ground in readiness for future US limitations on foreign aid as adopted by President Obama administration.
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