MedAccess volume guarantee to help Hewatele increase access to oxygen in East Africa

MedAccess and Hewatele, a Kenyan social enterprise founded to increase access to medical oxygen, today announced new volume guarantee agreement, designed to dramatically improve the availability of medical oxygen for hospitals in Kenya. 

Through the guarantee, Hewatele will supply medical oxygen to public and private health facilities across Kenya at or below an agreed ceiling price. In return, MedAccess will make a payment to Hewatele if sales volumes fall short of agreed targets. This offers Hewatele the assurance needed to invest confidently in robust supply chains and to keep medical oxygen affordable for hospitals.

MedAccess’ guarantee is part of a package of support provided by the East African Program on Oxygen Access (EAPOA). Funded by Unitaid, with contributions from Canada and Japan, the programme uses a blended financing model that combines catalytic grant funding with market-shaping tools such as volume guarantees. The project is led by CHAI in collaboration with PATH and the governments of Kenya and Tanzania. 

EAPOA has provided grant funding to complement investment raised by Hewatele to support the construction of a new plant near Nairobi. From this site, a hub-and-spoke distribution model will facilitate the delivery of oxygen to hospitals across Kenya, extending into parts of Tanzania and Uganda. 

“Hewatele is proud to participate in the EAPOA program aiming to improve accessibility to affordable medical gases for patients across East Africa,” said Hewatele CEO Dr. Zulfiqar Wali. “Hewatele’s $22m investment as supported by SEDF, Finnfund, UBS Optimus Foundation, GCC and Africinvest (THF) is our joint commitment towards fulfilment of United Nations SDG 3, which aims to  ensure healthy lives and promote wellbeing for all at all ages.” 

The volume guarantee is MedAccess’ second for a Kenyan oxygen provider. In July, the EAPOA partners announced a volume guarantee for Synergy Gases Ltd. By supporting multiple manufacturers, the partners aim to help build a resilient oxygen market with affordable supply to meet patients’ needs.

“MedAccess’ support for Hewatele demonstrates our commitment to a robust oxygen market in East Africa that meets the needs of patients,” said MedAccess CEO Michael Anderson. “Multiple local suppliers in the market means health facilities are less vulnerable to price shocks from imported oxygen and are less likely to face shortages if a plant malfunctions. This all adds up to better, more predictable access for patients.”

Medical oxygen is a lifesaving, essential medicine, yet persistent shortages in many areas of sub-Saharan Africa jeopardise patient health. In several countries, less than 10% of required oxygen is available, placing countless lives at risk. Oxygen remains critical for the treatment of pneumonia, COVID-19, advanced HIV, severe tuberculosis, and malaria, and is indispensable for maternal care, surgical procedures, and emergency interventions. Addressing these gaps demands both immediate, practical solutions and sustainable, long-term investments to meet increasing demand.

The EAPOA’s goal is to boost East Africa’s medical oxygen production capacity by 300% and reduce costs by up to 27%. This commitment will make oxygen significantly more affordable for health systems across the region and enable thousands more patients to access lifesaving treatment each month.

For more information about EAPOA, visit the UNITAID website.