Kenya’s Ilara Health cuts staff as funding crunch forces restructuring

Ilara Health, a Kenya-based healthtech company that helps primary care clinics deliver better healthcare, is restructuring its operations and laying off an undisclosed number of its employees.

In a statement, the company said the restructuring is in response to “current market conditions and financing dynamics, including a reversal of funding commitments and delays in disbursements.”  The affected employees have been notified and are already in the 30-day consultation process as stipulated in the Kenyan Employment Act of 2007.

The restructuring comes nine months after the startup received a $1 million loan from the International Development Finance Corporation (DFC) to improve its diagnostic platform. The company, which says it “has been working towards a clear path to profitability with market-fit products, leaner and more efficient operations,” will now focus on cash-generative business lines.

“This is a difficult moment for our team, especially in light of recent strides we have made in the business,” said Emilian Popa, founder and CEO of Ilara Health. Our colleagues are at the heart of Ilara, and we are committed to supporting them through this period.”

Kenya has seen waves of layoffs in recent times. In early 2025, mobility startup eBee Africa carried out a major restructuring that saw about 50 employees cut across all departments. July saw employee cuts from Mediamax Network Limited and Flutterwave, which cut 50% of its staff in Kenya and South Africa.

Founded in 2019 by Emilian Popa, Maximilian Mancini, and Sameer Afzal Farooqi, Ilara Health has partnered with over 3,000 primary healthcare clinics in 46 counties in Kenya. In February 2024, the startup closed a $4.2 million pre-Series A funding round to expand its operations in the country.

Ilara Health maintains that the restructuring will not affect service continuity. “We are resolutely focused on service delivery through the Ilara Health network, and our priority remains to underserved communities who need access to essential healthcare services in Kenya,” Popa added.

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