This archive report was first published on 26 November 2019.
Kenya's spiralling healthcare costs have left many patients struggling to afford medication. To address this issue, MYDAWA, a leading online pharmacy platform, has partnered with fintech firm Umba to provide cash advances for patients to purchase medication online.
According to Tony Wood, MYDAWA's Managing Director, the partnership aims to reduce the financial burden on patients who cannot afford medication. He noted that patients often have to buy only a portion of the prescribed medication due to financial constraints, leading to the symptoms returning and requiring stronger doses.
Wood emphasized that the partnership is in line with the Universal Health Coverage (UHC) goals in Kenya, which aim to ensure every Kenyan has access to quality healthcare services without being pushed into poverty.
Umba, a digital lending startup, will assess patients' credit scores and provide microfinance options to those who cannot afford medication. The platform will use an algorithmic approach to determine creditworthiness and offer flexible repayment plans.
Barry O'Mahony, Umba's founder, stated that traditional banks cannot serve the majority of emerging markets due to a lack of formal credit history. He added that Umba's mission is to build intelligent financing for the connected world through machine learning.
Under the partnership, borrowers can secure loans of up to 1,600 KES after providing personally identifiable information. The platform aims to provide a robust healthcare financing mechanism that reduces the health expenses burden on Kenyans.
