In 2019, Kenneth Njeru was a travel management expert who had just started exploring the intricacies of the stock market. As his interest in stock investment grew, he began to delve into various sectors, searching for lucrative opportunities. It wasn’t long before he identified the healthcare sector as a fertile ground for investment. However, Njeru encountered a significant roadblock: the Nairobi Stock Exchange (NSE), his local stock market, lacked any publicly traded healthcare stocks.
Njeru’s focus on the healthcare sector was driven by several key factors. He understood that healthcare has inelastic demand, meaning consumer spending on medical services typically remains stable despite price fluctuations or economic downturns. This characteristic, combined with an increasing interest from investors, made healthcare seem like a promising investment avenue. Yet, the macroeconomic factors that made healthcare an attractive opportunity were not enough to spur the Nairobi Stock Exchange to list healthcare stocks.
Despite these challenges, Njeru saw opportunity where others saw obstacles. He noticed that some health facilities in Kenya were struggling due to the impacts of the COVID-19 pandemic, which led to reduced revenues from medical college business schools and a general reluctance among the public to visit hospitals for fear of contracting the virus. But Njeru was undeterred. He began building a network of business owners across the country who were open to investment or willing to sell their entire healthcare stake once the economy rebounded.
Njeru’s approach to overcoming these hurdles was multifaceted. He focused on improving the efficiency of healthcare companies with information technology (IT), making them more attractive investment targets. This approach resonated with many healthcare business owners who were keen to streamline their operations and reduce costs.
One day, while networking on LinkedIn, Njeru came across a technological solution being used in Europe that significantly improved patient turnaround times. This technology sparked his imagination, leading him to consider how it could be adapted to the Kenyan healthcare system, particularly in remote areas where access to healthcare is limited. Njeru saw the potential to create a system that would not only improve patient outcomes but also ease the burden on overtaxed hospitals.
Njeru’s journey exemplifies how perseverance, networking, and innovation can open doors where they seem to be closed by leveraging technology and fostering connections with key stakeholders to bridge the gap between investment opportunities and healthcare needs in Kenya.
