Nairobi Women’s Hospital founder regains control of health institution

KENYA— Dr. Sam Maina Thenya, the founder of the Nairobi Women’s Hospital, has received full and unconditional approval from the Competition Authority of Kenya (CAK) to acquire a 75% stake in Healthlink Management Limited, the hospital controlling firm, from Evacare Group.

Dr. Sam Maina Thenya, a gynecologist by training, founded the hospital more than 22 years ago, and the hospital under his leadership has grown to a 726-bed modern hospital serving over 340,000 outpatients and 20,000 inpatient customers annually.

The Nairobi Women’s Hospital has also grown to a network of nine branches located in Hurlingham, Adams, Ongata-Rongai, Kitengela, Nakuru Hyrax, Nakuru CBD, Naivasha, Meru & Mombasa.

The For-profit 24-hour hospital is home to over 1,300 highly qualified, experienced, and dedicated staff members, who are the drivers of the hospital’s success and are committed to the overall objective of achieving a high degree of patient satisfaction.

Moreover, the hospital provides various healthcare services including in-patient, casualty, surgery, laboratory, radiology & imaging.

“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for the provision of health care services by private hospitals in Kenya, nor elicit negative public interest concerns,” said CAK in a statement.

CAK noted that the merger will not negatively affect competition for the provision of healthcare services by private hospitals as the transaction only involves an increase in shareholding in Nairobi Women’s Hospital by an existing shareholder.

“Premised on the foregoing, the authority determined that the proposed transaction will not lead to substantial lessening or prevention of competition in the market for the provision of health care services by private hospitals in Kenya or any part of Kenya,” the CAK stated.

The CAK in its decision notes that there are two key considerations during merger analysis.

First & foremost, Dr. Thenya is a Kenyan citizen and entrepreneur who directly controls undertakings in the country that are involved in the real estate business, specifically leasing.

Secondly, the merging parties whose combined turnover or assets, whichever is higher, is over US$ 7 million are required to seek approval from the Authority.

CAK noted that the transaction between Healthlink and Dr. Thenya met this threshold for mandatory notification and full analysis as provided in the Competition (General) Rules, 2019. 7.

Evercare has also sold its majority stake in another Kenyan Hospital group

In November 2022, Evercare Health Fund sold its majority shareholding in Metropolitan Hospital Holdings Limited (MHHL), the holding company that owns Metropolitan Hospital and Ladnan Hospital.

The MMHL noted that the transaction will enable the Hospitals to continue their growth trajectories while maintaining their commitment to delivering high-quality and accessible healthcare services in underserved communities.

With the close of the transaction, TMG now assumes majority ownership of MHHL.

Terms of the transaction were not disclosed, although Evercare and TMG’s investment over more than half of a decade, Metropolitan Hospital has seen extensive operational improvements and enhancements and has raised the bar for healthcare provision in Kenya.

The partnership resulted in Metropolitan Hospital achieving Level 5 Classification, accreditation by COHSASA, and a Level F laboratory status, among the highest level attainable by a hospital in Kenya.

Additionally, expanded bed capacity to 160, the introduction of modern modular theatres, a medical plaza that hosts over 40 consultants, and many other achievements.

 As part of the transaction, the current Evercare Board representatives, Jide Olanrewaju, Dr Dumani Kula, Thomas Verghese, and Dr Lawrence Ndombi have stepped down from the board of MHHL and will be replaced by new directors from TMG.

The transaction by Evercare shows the dynamic nature of the Kenyan private healthcare sector and its prominence to healthcare outcomes in the country as it currently provides 52% of all healthcare services and will continue to play a bigger role in the future.

Channelling private sector funding towards the healthcare sector is therefore key to filling in gaps in patient care, especially among traditionally underserved communities.

The private sector investment in healthcare helps alleviate the burden on local healthcare systems by supplementing both preventative and specialized care.

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