The U.S. International Development Finance Corporation (DFC) has announced a $1 million loan to Ilara Health, a Kenya-based health-tech startup. This investment aims to enhance private outpatient clinics in Kenya by equipping them with diagnostic devices, health management technology, and pharmaceutical products. The initiative is part of DFC’s broader strategy to address critical global challenges in health, energy, and food security while advancing U.S. foreign policy objectives.
Ilara Health has emerged as a pivotal player in Kenya’s private healthcare sector. By providing affordable access to medical equipment and pharmaceutical products, the startup seeks to bridge the gap in quality healthcare for underserved peri-urban and rural communities. The $1 million loan from DFC complements a $4.2 million pre-Series A debt-equity round in 2024, which included investments from DOB Equity, Philips Foundation, and other prominent players.
“In Kenya, quality of care, not access, is the issue. Our goal since launch has been to improve the standards of care,” said Emilian Popa, co-founder and CEO of Ilara Health. Popa emphasized that many private clinics lacked essential diagnostic devices or basic infrastructure, limiting their ability to provide quality care.
Founded in 2019 by Emilian Popa, Maximilian Mancini, and Sameer Afzal Farooqi, Ilara Health initially focused on leasing diagnostic devices to clinics. Over time, the startup expanded its offerings to include pharmaceutical products, hospital furniture, and practice management software. The company now serves over 3,000 clinics across Kenya — a fraction of the estimated 15,000 operational clinics in the country.
The clinics, often located in residential areas, provide a reliable alternative to Kenya’s under-resourced public healthcare system. Public facilities frequently grapple with equipment breakdowns and inconsistent service delivery, driving patients toward private options despite higher costs.
Ilara Health has partnered with manufacturers like Butterfly Network to supply affordable, portable diagnostic tools such as ultrasound devices. These tools enable clinics to offer scanning services that were previously out of reach for many communities. Additionally, Ilara Health provides subscription-based practice management software at a monthly fee of KSh 1,000 ($6.25). This software digitizes clinic operations, streamlining patient data management and financial reporting while facilitating compliance with Ministry of Health requirements.
Popa revealed that the data collected through the software would also support Ilara Health’s plans to offer working capital loans of up to $15,000 to clinics. “This initiative will enable clinics to manage their finances more effectively, improving their capacity to deliver quality care,” he said.
Kenya’s private healthcare sector has become the preferred option for those with medical coverage or the means to pay out of pocket. However, only 2.7% of Kenyans have private health insurance, and state-run health coverage often falls short in providing outpatient care. To address this gap, Ilara Health plans to expand its B2B health and occupational service. This initiative will partner with employers to provide employees access to outpatient services at partner clinics for a fixed monthly fee.
“We live in a place where access to outpatient care is limited. We have been building a provider model and are now reaching patients directly to complete the cycle,” Popa explained.
The $1 million loan to Ilara Health is part of a larger portfolio of 22 transactions approved by DFC in the first quarter of FY2025, amounting to nearly $3 billion. These transactions underscore DFC’s commitment to advancing global health, energy, and food security while supporting small businesses and critical infrastructure projects worldwide.
With its innovative approach to healthcare delivery, Ilara Health is well-positioned to make a significant impact on Kenya’s healthcare landscape. The investment by DFC not only strengthens Ilara Health’s capacity to serve underserved communities but also aligns with broader efforts to promote sustainable development in emerging markets.