Medical Credit Fund and M-tiba have today announced the 500th healthcare provider that received a Cash Advance loan, with a total value of Khs.7 Billion. Health businesses can access Cash Advance via the M-tiba platform and receive unsecured loans of up to Ksh.40million to scale and improve services and business operations.
Cash Advance has gone a long way in increasing medical capacity and creating overall accessibility to healthcare across Kenya. Since 2017, Medical Credit Fund provided 4,400 Cash Advance loans to Kenyan health businesses. Health entrepreneurs only need a mobile money account and with its entirely mobile application process, loans are disbursed within a few days.
Medical providers who struggle with working capital shortages, limitations to accessing sufficient traditional and affordable financing now have access to affordable and flexible loans of up to Ksh.40 Million with no collateral required. “This has indeed been a game changer for many healthcare providers. We see a huge gap as many healthcare providers cannot access loans from traditional institutions due to lack of sufficient collateral or other requirements. Thanks to Cash Advance, providers can apply for loans based on their M-pesa till number statements that will aid them in the improvement of medical services.” said M-tiba MD Mr Moses G. Kuria.
The overall goal of the Kenya Health policy 2014-2030 is to attain the highest standard of health in a manner responsive to the needs of the Kenya population. Through Cash Advance various healthcare providers are helping the nation get a step closer to this goal as more facilities have benefited from access to increased bed capabilities, newer and more advanced machinery, better and more efficient diagnosis and treatment processes.
Speaking during the announcement, Kennedy Okongo, Medical Credit Fund Country Director Kenya, expressed his joy on the positive impact the product has had on the healthcare space. “We are extremely happy to see our partnership with M-tiba enable more providers to expand and improve their healthcare standards within their various counties as a direct result of our service. With innovative solutions like Cash Advance, Medical Credit Fund helps entrepreneurs to increase their revenue, repair machines like ultrasounds, install a power back-up system or pay out staff salaries on time. Increasing investments into the health sector brings us closer to the goal of access to quality care for all Kenyans”.
An easy, entirely mobile application process aids more health providers to get activated and start borrowing. The product is built on M-PESA transactions on a Lipa Na M-PESA Till and does not require the provider to actively use the M-TIBA platform making it ideal for a majority of providers as most utilize till numbers to aid in easier and faster payment transactions. Loans are provided by Medical Credit Fund (MCF). MCF was established in 2009 by PharmAccess Group as part of its approach to strengthen African health systems and connect more people to better healthcare.