Ilara Health Announces Layoffs Amid Market Pressures And Funding Delays

Kenya-based healthtech company Ilara Health has announced plans to restructure its operations and reduce staff numbers, citing tough market conditions and delayed financing.

Founded in 2019 by Emilian Popa (CEO), Maximilian Mancini, and Sameer Afzal Farooq, Ilara Health provides affordable diagnostics, digitization, and healthcare financing support to primary care clinics across Africa.

The company said the move follows a combination of “current market conditions and financing dynamics, including a reversal of funding commitments and delays in disbursements,” which have made significant headcount reductions necessary to ensure service continuity. Employees potentially affected have been notified, and a 30-day consultation process has begun in line with Kenyan employment law.

Since its founding, Ilara Health says it has partnered with more than 3,000 primary healthcare clinics across 46 of Kenya’s 47 counties, indirectly supporting care for over six million patients annually.

Despite the restructuring, the company said it remains focused on profitability and will prioritize cash-generative business lines. Recent funding milestones underscore Ilara’s growth trajectory: in 2025, it secured a $1 million loan from the United States International Development Finance Corporation (DFC) to strengthen private outpatient clinics, and in 2024, it raised $4.2 million in a debt–equity pre-Series A round to expand operations in Kenya.

“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. “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. In addition, we are also resolutely focused on service delivery through the Ilara Health network, and our priority remains, as ever, to underserved communities who need access to essential healthcare services in Kenya.”

Ilara Health’s announcement follows a wave of layoffs among Kenyan startups and major firms grappling with high taxation, inflation, and challenging economic conditions. eBee Africa, for instance, announced significant layoffs earlier in 2025, citing declining revenue and the need for restructuring.

Digital credit provider Tala also cut 28 jobs in April after a drop in customer support queries as borrowers increasingly managed their own loan repayment schedules.

Ilara Health maintains that its restructuring will help preserve its core mission while adapting to the realities of a shifting funding environment and rising operational costs.