A new ‘Health Care Feasibility’ report by Open Capital Advisors reveals that over 820,000 people every year stand to benefit directly from services of a new private health care facility if it were built along the Thika Superhighway in Nairobi.
The new report, commissioned by Garden City, Kenya’s first mixed-use development, underscores that up to ten thousand Kenyans currently travel abroad in search of quality health care, spending over USD 10,000 on average due to supply constraints and high costs in local facilities.
With only 1.4 hospital beds per 1,000 people, the report suggests Kenya still has a considerable supply gap in quality health care despite the presence of top care hospitals, and identifies an immediate opportunity for investment in a Tier-3 level private hospital with up to 200 beds, which could be easily upgraded to a 500-bed capacity on Thika Superhighway.
Chris Coulson, Managing Director, Garden City commented, “As part of our Garden City Estate master plan, we have allocated land within the development for a world class medical facility not only to serve the needs of our Garden City residents and new office community, but for our wider community and customers as well. We’re excited to see that this new report suggests a flagship medical facility on Thika Superhighway, targeting specialized medical services and treatments, would serve as a primary hospital for as many as 820,000 people within a 5 to 10-kilometer radius, and as a secondary healthcare facility for another 1.3 million people in surrounding areas.”
Now considered a regional health care hub, Nairobi is one of the fastest growing cities globally, and already a strategic hub for multinational firms setting up in East Africa, putting it on Knight Frank’s top 5 ‘Watchlist Cities’ and directly corresponding to a growing health care market in Nairobi.
Referencing inefficiencies and lower perceived quality of public health care, the report notes that Kenyans surveyed prefer private facilities to meet their health needs. Those who can afford it are almost twice as likely to choose a private facility over public facility with up to 45 percent of Kenyans willing to travel to farther facilities to access higher quality services.
The report indicates that there is a strong market for expansion and improved services in Kenya, which could not only refocus health care demand to domestic providers, but in addition attract inbound medical tourism that currently accounts for approximately USD 30 million annually in Kenya.
At exit 7 on Thika Superhighway, the Garden City mixed-use estate is highly accessible from both the Nairobi City Centre and the Jomo Kenyatta International Airport (JKIA) offering an ideal location to meet Nairobi’s growing health care market. Plans are also underway for an international hotel within the estate, which would provide convenient accommodation for families and relatives, especially of those traveling for care.
According to the report, the 4.56 million people living in Nairobi currently drive approximately 16.2 million outpatient visits annually in the area, and approximately 260,000 inpatient admissions annually. Any flagship hospital on the Thika Highway could therefore draw from across Nairobi as well as nationally.
Garden City is currently home to 215 residents, both tenants and homeowners, with a thriving Mall offering over 100 shops, bars and restaurants, Nairobi’s largest Century iMax cinema, and footfall of over 4 million shoppers in 2018. The international project is leasing its first phase of Grade A offices (completing construction in May and already 60% pre-leased by EABL), as part of 25,000 sq. meters of commercial offices due to be completed in 2019 within the project’s extensive Business Park plans.
Notes to Editors:
About Garden City
Developed by leading emerging market investor Actis, Garden City is Kenya’s first Grade-A mixed use development involving significant elements of retail, residential, leisure and office use, bringing a new ‘live, work and play’ themed experience to the market, within a safe and green environment. The site extends to 47 acres and is situated at Exit 7 along the expanded Thika Superhighway. Garden City is a major hub for the Northern Nairobi catchment which currently does not have integrated retail, office and leisure facilities. The innovative project has and will continue to integrate international best practices at many levels including engineering, construction, landscape architecture and services in its future phases. Environmental features lie at the heart of this development, and the project is planned to be the first LEED (Leadership in Energy and Environmental Design) certified retail mall in East Africa. For more information please visit www.act.is.
About Open Capital Group
Open Capital Group is an Africa-based company with a mission to advance local economies and build the future generation of business leaders. The group offers management consulting & financial advisory services through Open Capital Advisors, and embedded talent placements through its Arcadia brand. We help businesses, investors, development partners, and the public sector identify opportunities and deliver unique, impactful solutions. Since 2010, Open Capital Group has completed over 500 engagements across more than 20 countries in Sub-Saharan Africa.
To learn more, visit www.opencapitaladvisors.com
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