Finnfund-backed Hewatele facility to cover 60% of Kenya’s oxygen demand

Global supply disruptions can have very local consequences. In Kenya, recent disruptions in international trade routes have highlighted how fragile access to essential medical supplies can be, including medical oxygen.
Hospitals have reported critical shortages of medical oxygen, affecting patients who require additional oxygen support in acute conditions. Medical oxygen is essential for treating pneumonia, managing pregnancy-related complications, and supporting patients during surgical procedures. It remains one of the most basic and life-saving components of modern healthcare.

Imported medical oxygen increases risk of delays and shortages

Kenya has historically relied heavily on imported medical oxygen. Around 70–75% of supply has been sourced from outside the country, with shipments typically routed through ports in the Gulf region such as Jebel Ali (Dubai), Sharjah, and Salalah.

Recent geopolitical developments affecting key shipping corridors have disrupted supply chains globally. For countries that depend on imports, including Kenya, this has increased the risk of delays and shortages in critical commodities.

“These ports have been damaged as a result of the bombings in Iran. Kenya has already gone two months without oxygen deliveries, and the situation in hospitals is extremely critical,” says Hewatele CEO Dr. Zulfiqar Wali.

While supply interruptions are not new, the current situation highlights the vulnerability of relying heavily on imported medical oxygen, particularly for countries where demand is increasing. There are, however, signs of progress.

New facility strengthens domestic supply

Hewatele’s new liquid medical oxygen production facility at Tatu City, near Nairobi, has just commenced production this June.
“The new facility is capable of producing 20 tonnes of liquid medical oxygen per day. We have production, storage, and distribution in place and will be serving not only Kenya but also across East Africa,” Wali explains. The facility will significantly strengthen domestic supply.

Large healthcare facilities will be able to receive liquid oxygen directly into on-site storage tanks, from where it can be piped directly to patients’ beds.
“We are offering smaller hospitals mobile cryogenic liquid oxygen tanks and high-pressure cylinders under a free leasing model, to ensure that this life-saving and irreplaceable medical oxygen is accessible, particularly for patients in rural areas,” Wali adds.

The plant’s capacity is expected to cover approximately 60 percent of Kenya’s demand, marking an important step toward reducing reliance on imports.
“Already today, Hewatele has significantly improved access to medical oxygen in Kenya. The company serves more than 370 customers, 90 percent of whom would otherwise have limited or no access to alternative oxygen supply. With the new plant, Hewatele will become the largest producer of medical oxygen in East Africa and will have a broader regional impact,” says Juho Uusihakala, Senior Development Impact Adviser at Finnfund.

Investors target efficiency and resilience

Hewatele’s expansion has been supported by a group of international investors, including development finance institution Finnfund, alongside partners such as the Soros Economic Development Fund, UBS Optimus Foundation, Grand Challenges Canada, and AfricInvest.

For Finnfund, this type of investment reflects a clear focus: strengthening essential infrastructure where gaps in access have direct impacts on health outcomes. Medical oxygen is a good example. While often overlooked, it is a critical input in healthcare systems , and one where supply constraints can have immediate consequences. By supporting scalable, locally anchored production and distribution, investments such as Hewatele’s aim to reduce vulnerability to external disruptions and improve reliability over time.

Finnfund’s approach combines development impact with long-term viability, supporting solutions that are not only needed today but can be sustained and expanded in the future. Kenya’s experience reflects a broader reality facing many countries: essential healthcare systems depend not only on trained personnel and facilities, but also on stable supply chains for critical inputs.

When those supply chains are disrupted, whether by global events, logistics challenges, or market constraints, the effects are felt directly at the patient level. Strengthening local capacity is therefore not only a matter of efficiency, but of resilience. As new investment in domestic production comes online, the focus is shifting from reactive responses to shortages toward building more stable systems that can reliably support healthcare delivery.