Private hospitals are borrowing billions of shillings to buy MRI machines, dialysis units and other specialist equipment, as banks build a fast-growing lending business around the country's push into advanced healthcare.

As they expand into oncology, cardiology, renal care, fertility, and advanced diagnostics, private hospitals, faith-based facilities, clinics, and diagnostic centres are turning to bank loans to acquire MRI machines, dialysis units, linear accelerators, mammography machines, and other specialised equipment.

Equity Bank alone has lent about Sh33 billion to the healthcare sector over the past five years, channelling Sh11.5 billion of it for medical equipment, as private hospitals, faith-based facilities and diagnostic centres turn to asset finance rather than wait to save up the cash.

“This product was developed to address the financing gap in acquiring medical equipment and to support healthcare providers in enhancing service delivery and expanding access to quality healthcare services,” Joseph Mbai, the General Manager and Team Leader for the Health Sector at Equity Bank, told the Business Daily.

The need for capital is particularly acute in Kenya, where significant gaps in access to specialised equipment persist. The country has around 50 MRI scanners, most of which are concentrated in Nairobi and a few other major centres.

This uneven distribution leaves many parts of the country dependent on facilities outside their regions for advanced imaging, therefore creating a financing market around medical equipment.

“We have recently financed 30 renal dialysis units, two MRIs, one piece of cardiology equipment, two linear accelerators, one genetic sequencer and one mammogram machine,” said Dr Mbai.

This equipment enables private facilities to expand their services beyond general medical care to include those that require significant investment in machinery.

For example, a dialysis unit enables a hospital to provide renal treatment, and a linear accelerator allows it to develop radiotherapy services. An MRI machine enables a facility to perform imaging scans on patients within its network instead of referring them elsewhere.

The increased investment in equipment purchases and upgrades is partly driven by demand for specialist treatment in Kenya, as well as the country's emergence as a regional healthcare destination.

This shift is encouraging hospitals to invest in specialised services such as oncology, renal care, cardiology, imaging, laboratory diagnostics, fertility, ENT and orthopaedics, thereby keeping patients at home instead of sending them abroad for treatment.

Apart from Equity Bank, other lenders have also developed similar products as hospitals seek ways to acquire equipment without bearing the full cost upfront.

The Co-operative Bank has a dedicated healthcare proposition that finances or leases equipment such as MRI and X-ray machines, as well as surgical tools. Its healthcare offering also includes working capital lines and payment collection tools designed for hospitals, clinics, and diagnostic centres.

The bank's Africa Medical Equipment Facility (AMEF), which was developed in partnership with the International Finance Corporation (IFC), GE Healthcare, Philips Healthcare and KARL STORZ, provides financing for clinics, hospitals, medical imaging centres and laboratories. Under the facility, individual healthcare providers can access loans and leases ranging from $5,000 (Sh645,000) to $2 million (Sh258 million).

“This partnership with the IFC and Philips will enable the Co-operative Bank to extend credit to a wider range of investors in the healthcare sector,” said Gideon Muriuki, the bank's Group Managing Director and Chief Executive Officer, at the launch of the product.

For smaller hospitals and diagnostic centres, the facility provides an alternative to funding the full purchase price of equipment from their own cash reserves.

Meanwhile, I&M Bank entered this market in 2019 with a product initially aimed at its premium banking clients, covering X-ray, dialysis, theatre, ICU, ultrasound, radiology, sterilisation and laboratory equipment.

“We believe that this financing will help our customers in the healthcare industry accelerate their business growth while contributing to universal healthcare,” said the lender during the launch.

Customers financed under the product also receive discounted all-risk insurance cover for the equipment through I&M Insurance Agency, as well as insurance premium financing, which spreads lump-sum premiums into monthly instalments.

In May 2026, Absa Bank Kenya moved deeper into the market when it relaunched its asset financing arm with a Sh100 billion financing capacity over three years. Medical equipment for hospitals, clinics, and laboratories was named as one of its priority categories.

While these financing products enable hospitals to acquire equipment without first accumulating the full purchase price, they also create a repayment obligation dependent on the equipment generating sufficient income.

lowoko@ke.nationmedia.com