Investors Fund Hewatele's Medical Oxygen Expansion in East Africa
Kenyan medical oxygen producer Hewatele has secured $20 million in funding to expand its production capacity and improve supply across East Africa.
Hewatele, a Kenyan producer of medical oxygen, has secured a $20 million funding package from investors including Finnfund, the U.S. International Development Finance Corporation (DFC), Soros Economic Development Fund (SEDF), and UBS Optimus Foundation.
The funds will be used to construct a new liquid oxygen (LOX) manufacturing facility on the outskirts of Nairobi, and to expand regional distribution capacity within Kenya. The company will also double its existing capacity for producing and distributing medical oxygen in pressurized gas cylinders (GOX) from its hospital-based sites.
Demand for medical oxygen has significantly increased, particularly since the COVID-19 pandemic, leading to unreliable supply and high costs in Kenya. Hewatele's investment is expected to reduce production costs and enable an increase in output of at least 20 tons per day, potentially lowering costs for healthcare customers by up to 30%.
Hewatele, founded by doctors in 2013, aims to address the inadequate and expensive supply of life-saving medical oxygen in the region. Improved access to oxygen is anticipated to significantly reduce child mortality and improve maternal health outcomes.