Kenyan Banks Finance Surge in Hospital Equipment Upgrades

Kenya’s private healthcare sector is witnessing a significant rise in borrowing to acquire specialised medical equipment such as MRI machines, dialysis units, and linear accelerators. This trend is driven by growing demand for advanced healthcare services and the country’s ambition to become a regional medical hub.

Growing Demand Spurs Bank Lending

Private hospitals, faith-based facilities, clinics, and diagnostic centres are increasingly accessing bank loans to finance costly equipment purchases. Equity Bank, for instance, has lent approximately Sh33 billion to the health sector over the past five years, with Sh11.5 billion directed specifically towards medical equipment acquisition.

Joseph Mbai, Equity Bank’s General Manager and Health Sector Team Leader, explained that these financing products help bridge the gap for healthcare providers seeking to expand service delivery and improve access to quality care.

Addressing Equipment Shortages Nationwide

Kenya currently has around 50 MRI scanners, predominantly located in Nairobi and a few major urban centres. This uneven distribution forces many patients to seek advanced imaging and specialist treatment outside their regions, creating a financing opportunity for equipment acquisition in underserved areas.

Equity Bank has recently financed 30 renal dialysis units, two MRI machines, cardiology and oncology equipment, including linear accelerators and mammography machines, enabling facilities to offer services such as renal care, radiotherapy, and advanced diagnostics.

Bank Partnerships and Financing Options

• Co-operative Bank offers a healthcare financing proposition, including loans and leases for MRI, X-ray machines, and surgical tools. Its Africa Medical Equipment Facility (AMEF), developed with IFC, GE Healthcare, Philips Healthcare, and KARL STORZ, provides loans ranging from $5,000 to $2 million for clinics and hospitals.
• I&M Bank launched a specialised financing product in 2019 targeting premium banking clients, covering a wide range of hospital equipment such as ICU, radiology, and laboratory tools. It also offers discounted all-risk insurance and premium financing options.
• Absa Bank Kenya relaunched its asset financing division in May 2026 with a Sh100 billion capacity over three years, prioritising medical equipment financing for healthcare providers.

Balancing Growth with Repayment Obligations

While these financing solutions allow healthcare providers to acquire expensive equipment without upfront capital, they also create repayment responsibilities dependent on the equipment generating sufficient revenue.

This surge in equipment financing reflects Kenya’s evolving healthcare landscape, with banks playing a pivotal role in enabling private facilities to expand specialised services and reduce the need for patients to seek treatment abroad.