NAIROBI, KENYA, Feb. 12—The International
Finance Corporation (IFC) will invest US$0.5 million in AAR Health Services
Limited (AAR), Kenya, for a US$1.0 million expansion to outfit the company's
medical clinics, purchase ambulances and communications equipment, and
provide working capital to finance the rapid growth of its services throughout
East Africa. IFC's equity investment will enable the Corporation
to play a significant role in promoting health services in Kenya.
Mr. Jannik Lindbaek, Executive Vice President of IFC, who signed the agreement
on behalf of IFC, said in Nairobi, "We are pleased to be associated
with a project with such a strong developmental impact. It will introduce
more competition leading to better and more affordable health services;
uplift the quality of life of many people who will have medical coverage
for the first time; and reduce the burden on the already over-stretched
public health services sector. IFC's participation in the project
will also facilitate AAR's entry into the larger East African market and
may help to attract other institutional investors."
AAR, a managed health care organization, provides in-patient hospital and
out-patient health services at six AAR-owned medical clinics in Kenya and
Uganda. AAR is a key player in the health managed care sector in
IFC, a member of the World Bank Group, is the largest multilateral source
of equity and loan financing for private sector projects in developing
countries. In Kenya, since 1967, IFC has invested US$263 million
in 56 projects, of which US$211 million was for iits own account.