The Nairobi Hospital has suspended the implementation of its recently announced price adjustments following negotiations with medical insurance providers.
Chief Executive Officer Felix Osano said on Monday that the decision was made “in good faith” after insurers requested more time for dialogue on the contentious tariff changes, which had prompted eight companies to suspend coverage of the facility’s services.
Last month, the 70-year-old private hospital increased the cost of several key services by up to 61 percent, affecting scans, ultrasounds, and bed charges. Management attributed the move to higher operational costs, including rising prices for pharmaceuticals and medical supplies, saying the adjustments were necessary to sustain its standards of care.
The price hike triggered a backlash from Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR, CIC, and Pacis Insurance, all of which halted coverage starting this week, citing failed negotiations for fairer rates. Monday’s meeting also brought in representatives from Heritage, Kenindia, Kenya Alliance, and Fidelity.
Mr Osano described the discussions as “open and constructive,” adding that the hospital remains committed to “strong partnerships with stakeholders” and its mission to deliver accessible, high-quality healthcare.
The Kenya Hospital Association-owned facility has in recent years faced internal leadership wrangles, financial mismanagement claims, and mounting debt reportedly exceeding Ksh 3 billion. A creditor has filed a court petition seeking its liquidation, with the hearing scheduled for Wednesday.
