Medical solutions provider Hewatele plans to increase local supply of oxygen to 50pc from the current 25pc upon completion of its Ksh 2.6 billion liquefied oxygen plant in Tatu Industrial Park.
The firm says the investment in its first liquefied oxygen plant targets to boost oxygen supply in Kenya and reduce over reliance of imported oxygen which has left the health sector vulnerable. Currently, Kenya’s health facilities rely on 75pc of imported oxygen to meet the demand.
“Oxygen distribution currently takes seven to fifteen days. This plant will cut delivery times to just 24 hours,
ensuring timely access where it is needed most,” said Hewatele Chief Executive Officer Dr. Zulfiqar Wali during a tour of the facility by management and Board of Finnfund, led by Finland’s Ambassador to Kenya, Riina-Riikka
Heikka.
According to Dr Wali, once operational by the end of the current quarter, the new plant will have a daily production capacity of 20 tonnes, and is expected to serve at least 300 healthcare facilities across the country, a move which is will save hundreds of lives.
The project is supported by Ksh 2.6 billion ($20m) in investment, including Ksh 453 million ($3.5m) from the
Government of Finland through Finnfund, alongside funding from Grand Challenges Canada, the
Soros Economic Development Fund, UBS Optimus Foundation (Switzerland) and Africinvest- THF
program.
“The project addresses a critical need in Kenya while successfully combining strong commercial potential with meaningful development impact,” said Jaakko Kangasniemi, Finnfund Managing Director.
To further strengthen last-mile delivery, Hewatele has established two state-of-the-art liquid oxygen refilling stations in Kisumu and Mombasa, as well as five gas distribution depots located across strategic hubs in Kenya.
Through a hub-and-spoke model, the company is also installing cryogenic tanks at key national referral hospitals to ensure a reliable, continuous supply.
Dr. Wali also called on the government to consider providing subsidized power to support local manufacturing under the BETA program and to include medical oxygen costs within the Social Health Insurance Fund (SHIF) reimbursement framework, enabling hospitals to budget sustainably for this essential commodity.
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