This archive report was first published on 8 December 2019.
Kenya's healthcare system is facing a daunting challenge, with a significant portion of the population unable to access basic healthcare services. According to the World Health Organisation, countries in the African continent have access to just one per cent of the world's financial resources for health yet bear 24 per cent of the global disease burden.
As a healthcare and financial services investor, Leapfrog Investments has studied the health-seeking behaviours and spending habits of emerging consumers to inform its investment strategy. The firm notes that the average cost of gym membership in Nairobi is roughly Sh4,000 a month, while basic health checks that cost as little as Sh200 are often overlooked.
Dr Felix Olale, a partner and Global Lead for healthcare investments at Leapfrog Investments, argues that the ease with which Kenya's emerging middle class are quick to pay for expensive gym memberships while lax about undergoing basic health checks is symptomatic of how traditional health systems have been historically designed and continue to operate.
With only about 20 per cent of the Kenyan population having some form of health insurance, primarily through employment, the rest pay cash for health services. This has resulted in several issues, including poorly-equipped health centres, shortage of skilled healthcare workers, limited availability of quality medicine and limited use of medical technology.
Dr Olale believes that a systematic patient-centred and collaborative approach among all stakeholders is mandatory if Kenya is to solve its daunting healthcare needs. He notes that investments in diagnostic and preventative health solutions that address underlying causes of non-communicable diseases (NCDs) such as diabetes, heart disease, high blood pressure and cancer are essential.
Leapfrog Investments has invested in Goodlife Pharmacies, a company that has grown three-fold since the investment to reach 60 locations. Dr Olale believes that such health systems readily found globally can also be developed in Africa, but this will only be possible if policymakers, regulators, payors, health workers, medical facilities, patient advocacy groups and the private sector work together.
