SOUTH AFRICA— NEXT176, a fully owned subsidiary of Old Mutual, has made a US$2 million investment in Kena Health, a telehealth service provider, with the aim of increasing access to affordable and high-quality healthcare in South Africa.

Kena Health has developed a smartphone app that enables underserved communities to have improved access to healthcare professionals.

The app allows clients to communicate with nurses, doctors, and mental health professionals through talk, SMS, or video calls, all at a price of US$9.4.

Kena Health has gained recognition as a leading player in the telehealth industry, known for its wide reach and the quality of its services.

Since its launch in March 2022, the Kena Health app has become the top-ranked medical app in South Africa’s Google Play Store and ranks third in the Apple App Store.

With over 200,000 downloads and positive customer reviews, the app holds ratings of 4.8 and 4.9 out of 5 on each respective store.

Kena Health plans to expand its primary care service by adding new types of healthcare workers and forming partnerships with specialized care providers to support more complex health journeys.

The telehealth provider also offers flexible operating hours to ensure patients can access and receive care outside of traditional office hours when necessary.

As a venture backed by Old Mutual, NEXT176 was established to create a significant impact within specific ecosystems that influence the future of emerging economies.

The organization aims to build, invest in, and partner with startups and corporates to achieve disruptive and sustainable growth.

Saul Kornik, CEO and Founder of Kena Health, expressed confidence in the partnership with NEXT176, stating that it positions Kena Health to contribute to a substantial transformation in healthcare in South Africa.

Vuyo Mpako, CEO of NEXT176, mentioned that this strategic investment in Kena Health is the company’s third, with more investments in the pipeline.

In a statement, Old Mutual acknowledged the high cost of illness in South Africa, particularly for the low-income market, where 80% of the population lacks access to private healthcare due to escalating costs.

This situation disproportionately affects poorer and younger individuals who are new to the workforce or facing employment challenges.

Consequently, the already strained and underfunded public healthcare system in South Africa faces additional pressure.

Old Mutual believes that Kena Health, identified by NEXT176, can be an effective solution through its technology-driven healthcare teams.

The app allows patients to access monthly check-ups, repeat prescriptions, and family planning services.

South African healthcare system

The investment by Old Mutual in Kena Health aligns with the context of South Africa’s healthcare system, which faces challenges in terms of access and quality.

The country’s healthcare system is ranked 49th out of 89 countries, with up to 80% of the population relying on an underfunded and poorly managed public healthcare system.

Rural areas struggle with healthcare accessibility, and retaining physicians within the public system is a concern.

In contrast, approximately 80% of doctors work in the private system, serving a small portion of the population consisting mainly of middle-class, upper-class families, and expatriates.

This disparity places the public healthcare system in a constant state of resource scarcity, while the private system remains robust.

To address these issues, the South African government has plans to establish National Health Insurance in 2026.

This social health insurance system aims to improve access to quality healthcare for all citizens and residents, regardless of their socioeconomic status.

The scheme mandates contributions from employers and employees to partially fund the healthcare system.

Through government-sponsored plans, South Africans will have the option to choose from various providers and have their health services directly paid for.

In this context, the investment by Old Mutual in Kena Health is significant. It aims to increase access to affordable and quality healthcare, specifically targeting underserved communities.

By leveraging technology and innovative solutions, such investments contribute to improving the overall healthcare landscape and support the government’s efforts to establish a more equitable and comprehensive healthcare system.

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