Kenya Public/Private Equity Healthcare Market faces another setback with management displaced at Nairobi Women’s Hospital Group in wake of Owaahh reporting

Update: Feb. 12, Jaindi Kisero column in Daily Nation recommends, “To ward off greedy investors, fund locals to put up private hospitals“.

Back in 2019 a private equity group from Ft. Worth, Texas and San Francisco, TPG, took over the Abraaj Growth Markets Health Fund from its interim manager Alix Partners, the U.S.- based restructuring/insolvency advisors. The Abraaj funds, run out of Dubai by original Pakistani investors, had been apparently fraudulently tapped by management, thus the restructuring under the auspices of a Limited Partner Advisory Committee, which hired Alix.

The Limited Partners included global healthcare giants Phillips and Medtronic, multilateral development lenders including the IFC as well as bilateral development finance agencies such as the US Government’s OPIC, the CDC and Proparco. Likewise the Bill & Melinda Gates Foundation invested.

TPG renamed the Abraaj Growth Markets Health Fund as the Evercare Health Fund, to be managed by TPG Growth. At the time of the TPG announcement, Evercare was identified as having a “portfolio which includes 26 hospitals, 18 clinics, 40 diagnostics centres and 2 brownfield and greenfield assets” in Africa and Asia. One of the asset groups in the newly renamed Health Fund was a Kenya for profit group of small hospitals called Nairobi Women’s.

See “US fund cleared to take over Avenue Park and Metropolitan” in The Business Daily.

Triggered by an explosive series by prominent Nairobi blogger Owaahh, “Have you ever been to a private hospital“, scrutiny has come down on the group for profiteering behavior toward patients without medical basis. Insurers pulled back and now the Fund has announced an interim management change with the entrepreneur/doctor who built and ran group stepping aside in favor of a three member team of Evercare representatives pending professional reviews.

Uganda: New links for ongoing themes . . .

Uganda will review its commitment of forces to the AMISOM mission in Somalia due to being “stabbed in the back” by accusation of arming rebels in DRC.

Today, Uganda’s Media Council ordered suspension of a play entitled “State of the Nation” about corruption and poor governance, pending a “review”.

The Ugandan Speaker of Parliament, Rebecca Kadega, is attracting popular support for standing up to pressure on a recent trip to Canada on the longstanding “anti-homosexuality” bill, and rejects the notion that she should block debate on the bill to appease aid donors or avoid visa suspensions.

In the meantime, two patients from a road accident reportedly died after the ICU in Uganda’s largest hospital closed recently due to lack of equipment:

According to a research paper published by the Bio Med Central Journal, Uganda has only one ICU bed for every one million Ugandans. The paper reveals that critical care remains neglected with many patients with potentially treatable conditions unable to access services.

Ideally, with Mulago’s 1,500 bed capacity, at least 150 of them should be in a high dependency ward for people who need more intensive observation and treatment.

Other departments that have ICU beds in the hospital are the pediatric ward (4) which are not working, the Heart Institute (4) and the Cancer Institute (3) while the general ward has 12 beds with no equipment. Other public hospitals that have functioning ICUs in the country are Mbarara, Lacor, Gulu and Jinja.

h/t Rosebell’s Blog on Twitter

VOA reports that Britain has joined Ireland in an aid suspension over corruption in the Prime Minister’s office (although apparently the Irish suspension is general, whereas the UK is apparently only suspending aid to that one office):

The money was meant to have been spent on helping the needy, and to help pay for a ‘peace recovery and development program’ in northern Uganda after decades of conflict and devastation.

The Ugandan government has pledged prosecutions. Two senior officials have been charged, while 17 others have been suspended as the investigation continues.

“This report does not surprise anybody,” said Dr. Fred Golooba Mutebi, a political analyst and a visiting fellow at the University of Manchester in the United Kingdom. The only shock, he added, “is the amounts of money stolen are quite colossal.”

"Freedom of expression is your right"

“FREEDOM OF EXPRESSION IS YOUR RIGHT”