Hewatele to open Kenya’s first liquid oxygen plant

Kenya’s long-standing struggle with medical oxygen shortages could soon ease following the construction of the country’s first liquid oxygen production plant by healthcare solutions provider Hewatele.

The facility, located at Tatu Industrial Park and expected to be completed by the end of the first quarter of 2026, is projected to significantly boost local oxygen production and reduce Kenya’s heavy reliance on imports, which currently account for about 75 per cent of national supply.

On Monday, the management and Board of Finnish development financier Finnfund, led by Finland’s Ambassador to Kenya, Riina-Riikka Heikka, toured the plant, terming the project a critical intervention for Kenya’s healthcare system.

Kenya loses thousands of lives annually due to inadequate access to medical oxygen, with mothers and children among the most affected.

At present, imported liquid oxygen can take between four and six weeks to arrive, leaving hospitals vulnerable to shortages.

Hewatele Chief Executive Officer Dr Zulfiqar Wali said the new plant would dramatically shorten delivery timelines and improve reliability.

“Oxygen distribution currently takes between seven and fifteen days. This plant will cut delivery times to just 24 hours, ensuring timely access where it is needed most,” Dr Wali said.

Once operational, the plant is expected to meet more than 50 per cent of Kenya’s medical oxygen demand, with a daily production capacity of 20 tonnes.

It will supply approximately 300 healthcare facilities across the country and is expected to save hundreds of lives annually.

The project has attracted about USD 20 million (approx. Ksh.2.5 billion) in investment, including USD 3.5 million (approx. Ksh.451 million) from the Government of Finland through Finnfund.

Other financiers include Grand Challenges Canada, the Soros Economic Development Fund, UBS Optimus Foundation of Switzerland and the Africinvest-THF programme.

Finnfund Managing Director and CEO Jaakko Kangasniemi said the investment demonstrated how development financing could address urgent public needs while remaining commercially viable.

“This project addresses a critical need in Kenya while successfully combining strong commercial potential with meaningful development impact,” he said.

To strengthen last-mile delivery, Hewatele has already established liquid oxygen refilling stations in Kisumu and Mombasa, alongside five gas distribution depots in strategic locations countrywide.

The company is also rolling out a hub-and-spoke model, installing cryogenic tanks at major national referral hospitals to guarantee a continuous and reliable supply.

Beyond production, Dr Wali urged the government to support local manufacturing by providing subsidised power under the Bottom-Up Economic Transformation Agenda (BETA) programme and to include medical oxygen costs in the Social Health Insurance Fund (SHIF) reimbursement framework.

He said this would enable hospitals to budget more sustainably for the life-saving commodity.

With plans for additional depots and a second phase targeting the wider East African region, the Hewatele project is being hailed as a major boost to Kenya’s healthcare infrastructure and regional health security.