hospital price hike

Nairobi Hospital has suspended the implementation of its recently announced price adjustments following intensive discussions with leading medical insurance providers. The decision was announced on August 12, 2025, as a gesture of goodwill to allow for further consultations and collaborative dialogue to resolve concerns around the controversial tariff hikes.

Insurers’ Response to Price Hikes

The suspensions come after eight major insurers—including Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR, CIC, and Pacis Insurance—halted coverage of Nairobi Hospital services due to a sharp increase of up to 61% in fees for critical services such as scans, ultrasounds, and bed charges. The insurers warned their clients that coverage suspensions would take effect from August 11 or 12, sparking anxiety among patients and leading to disruptions in access to care.

Hospital’s Justification

Nairobi Hospital’s CEO, Felix Osano, stated the suspension was made “in good faith” following a highly strategic and productive meeting with top executives from the insurers and other stakeholders like Heritage, Kenindia, Kenya Alliance, and Fidelity. Osano reassured the public that discussions were open and constructive, emphasizing the hospital’s dedication to maintaining strong partnerships and delivering high-quality, accessible healthcare.

Financial Pressures

The hospital justified the tariff increases as necessary to address rising operational costs, including expensive pharmaceuticals and medical supplies, and to sustain its high care standards amidst financial and leadership challenges. Nairobi Hospital has faced allegations of financial mismanagement and disputes involving debts exceeding KSh 3 billion, further complicating the situation.

Ongoing Negotiations

Both the hospital management and insurance providers agreed to continue negotiations with the aim of crafting a transparent and sustainable pricing model. Meanwhile, Nairobi Hospital assures patients and the public that delivering excellent and accessible healthcare remains its utmost priority.

Broader Healthcare Implications

This ongoing tariff dispute highlights broader challenges in the Kenyan healthcare insurance space, balancing cost sustainability with patient access to quality services.