AAR Healthcare Ltd will be leaving Tanzania due to the lower number of visitors to its eight clinics and due to the financial problems exacerbated by the Covid-19 pandemic.
The healthcare provider announced in a memo to employees that the settlement process has started because it can no longer meet its obligations to employees and creditors in a timely manner.
“The company’s parent company, AAR Healthcare Holdings, is no longer willing to meet the company’s financial requirements (AAR). Healthcare Tanzania Limited) and on this basis the board of directors has decided to initiate a voluntary liquidation process for creditors, ”said Andrew Rowell, acting director of AAR Healthcare Limited.
The liquidation process includes convening a creditors’ meeting for the company formal agreement of appointment of liquidators.
The creditors The meeting is scheduled to take place on April 22.
Mr. Rowell assured employees that their employment contracts would remain intact and business would continue uninterrupted until the creditors’ meeting.
AAR began operations in Kenya in 1984 and offered medical evacuation services on the road and in the air. The company expanded to Tanzania in 2007 after obtaining an insurance license and aimed at an ambitious expansion program.
In 2011, the shareholders of the AAR Group decided to split the business into two separate entities, AAR Healthcare and AAR- Insurance.
The insurance wing left Tanzania in 2019.
AAR Healthcare also operates in Uganda, where it was founded in 1994, and in Kigali, where it was launched in 2005, and brought Healthcare provider operates four of the countries in the US.
AAR Healthcare (K) Limited is the largest provider of outpatient health services in the East Africa region and operates a network of 18 medical centers in Kenya.