A new Medical Oxygen manufacturing Plant is being constructed in Kilifi at a cost of Ksh2.8 billion which will help reduce the cost of oxygen prices for medical use in the country.
Already construction work has begun at Kokotponi area in Kilifi south, Kilifi County while a similar one is also being constructed in Tanzania.
Once complete, the plant will position Kenya among the few East African countries that manufacture medical oxygen.
Reports from the World Health Organization (WHO) indicate that over 500 patients globally in low and medium income countries need medical oxygen on a daily basis.
Another report from the East Africa Program on Oxygen Access (EAPOA) also indicates that the daily need of medical oxygen in the region was 7,000 tonnes but only 750 tonnes was being produced.
The new plant will be operated by Synergy Gases Limited and once ready there will be an increase in the availability of medical oxygen as Tanzania Oxygen Limited plans to produce at least 2,000 tonnes to close the gap by a third.
EAPOA aims to expand medical oxygen production by 300% in East Africa, and reduce oxygen prices by up to 27%, making it more affordable for healthcare systems across the region.
The project is being funded by the Japanese and Canadian governments through MedAccess, Unitaid and the Clinton Health Access Initiative (CHAI).
In a press release, authorities said once the two plants are complete it will be Africa’s first regional initiative to increase the availability of medical oxygen.
Synergy Gases Limited will provide medical oxygen to public and private hospitals across Kenya at or below a negotiated ceiling price once production begins later this year.
On the other hand, MedAccess will make a payment to Synergy gases limited if sales fall below agreed volumes, giving the company confidence to invest in reliable supply chains and price medical oxygen affordably.
Paras Pandia, Managing Director of Synergy Gases Limited said that they were honoured to be part of the transformative agreement with MedAccess, whose aim is to expand access to life-saving medical oxygen throughout East Africa.
“Our new facility in Kilifi County is a significant milestone in ensuring regional oxygen security and aligns with the EAPOA goal. We are grateful for the strategic support provided by CHAI and Unitaid. Their partnership has been instrumental in making this vision a reality,” said Pandya.
He said each cylinder of oxygen produced will contribute to saving lives, even if it is a newborn, a mother in labour, a patient undergoing surgery or somebody who has respiratory illness.
“The plant will create 3,000 direct jobs and 1,000 indirect jobs,” said the Synergy Gases Limited MD.
On his part, the Chief Executive Officer of MedAccess Michael Anderson said the organization seeks to support country-led approaches to increase production of medical liquified oxygen.
He said Medical oxygen is a life-saving tool that is too often unavailable when patients urgently need it.
“MedAccess is pleased to bring a powerful innovative financing solution to help boost local production of liquid oxygen, which can then be provided at stable prices. Working with the EAPOA partners, we are committed to supporting country-led approaches to increase access to this essential medical product,” he said.
The Investors will focus on producing both industrial and medical gases aimed at serving key sectors, including manufacturing firms, healthcare institutions, laboratories, and research organizations.
