The International Finance Corporation (IFC) is set to lend $10 million (Sh1.3 billion) to Mombasa-based medical device manufacturer Revital Healthcare (EPZ) Limited to aid its expansion.
The company, in which the founder Rajnikant Chandulal Vora holds a 64 percent stake, is investing a total of $23.4 million (Sh3 billion) in the project. Dr Vora and his family hold a total of 73 percent of the company, with other shareholders holding the remaining 27 percent.
Additional funding is coming from internally generated cash and financing from a joint venture partner. The proposed IFC loan is a 10-year senior facility.
‘The investment will finance additional kitting and cold-chain infrastructure at the existing Kikambala facility, as well as the development of a new logistics and warehousing hub on a 20-acre parcel within the Dongo Kundu Special Economic Zone (SEZ) in Mombasa County, Kenya,’ IFC said in its investment disclosures.
‘The project is expected to strengthen the company’s ability to serve regional healthcare markets and support employment creation.’
Healthcare kitting and fulfilment involves assembling, packaging and distributing healthcare-related products as complete kits to patients, providers, clinics, research sites and healthcare facilities.
The benefits of kitting in healthcare logistics include increased consistency and accuracy, stronger regulatory compliance, and simplified inventory management.
IFC says its long-term financing will support Revital Healthcare’s expansion without putting pressure on the company’s cash flows.
‘In the prevailing market, most banks offer manufacturing companies funding tenors of up to 3-5 years. Such shorter-term financing could put strain on Revital’s debt profile, which includes short-term facilities,’ the global financier said.
Revital Healthcare was established in 2006 and produces medical consumables and devices including syringes, needles, diagnostic products, neonatal care products, catheters and personal protective equipment (PPE).
The company exports its medical products to more than 60 countries worldwide through partnerships with leading global health organisations, including the United Nations Children’s Fund (UNICEF), Program for Appropriate Technology in Health (PATH), and the Bill and Melinda Gates Foundation.
Other partners are the United States Agency for International Development (USAID) and the Africa Centers for Disease Control and Prevention (Africa CDC).
IFC says the company’s manufacturing operations and product portfolio are supported by internationally recognised certifications and regulatory approvals, including 10 World Health Organization (WHO) Prequalified products, United States Food and Drug Administration (US FDA) 510(k) clearances and Medical Device Single Audit Program (MDSAP) certification.
‘The project is expected to expand access to affordable, quality health products for healthcare facilities and humanitarian settings across Kenya and East Africa, including essential healthcare kits for vulnerable populations reliant on donor-supported services,’ IFC said.
‘It will also support skills development and create direct and indirect employment opportunities in medical supplies manufacturing and logistics. Beyond these impacts, IFC’s financing will strengthen the resilience of the regional medical supplies market by supporting a systemically important player, helping scale critical manufacturing infrastructure while promoting greater market diversification and regional integration.’
Revital Healthcare is the latest Kenyan firm to be supported by IFC, which has backed scores of local firms through debt or equity investments.