Ilara Health, the Kenya-based healthtech company, has confirmed that it will be cutting a substantial portion of its workforce as part of a major restructuring effort.

The company, which has been operating since 2019 to provide affordable diagnostics, digitization, and healthcare financing to primary care clinics, cited tough market conditions and delayed funding commitments as the main reasons behind the layoffs.

In a statement, Ilara Health said that the headcount reduction was unavoidable to ensure the business remains sustainable while maintaining service delivery to its network of over 3,000 partner clinics. The affected employees have already been notified, and a 30-day consultation process is underway in line with Kenyan employment law.

“This is a difficult moment for our team,” said Emilian Popa, Founder and CEO of Ilara Health. “We know that any potential job losses have a real impact on people’s lives. Our colleagues are at the heart of Ilara, and we are committed to supporting them through this period.”

Despite the layoffs, Ilara Health emphasized that its priority remains continuity of care for the more than 6 million patients reached annually through its clinic network across 46 counties in Kenya. The company noted that it is shifting focus to its most cash-generative business lines in a bid to streamline operations and move closer to profitability.

The restructuring marks one of the most significant workforce cuts in Kenya’s healthtech sector in recent years, underscoring the broader funding challenges facing venture-backed startups across Africa.