Eight leading insurance companies have suspended their services at The Nairobi Hospital following a sharp increase in treatment costs announced by the facility.
The insurers, Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR Insurance, CIC Group, and Pacis Insurance, say the new charges, which have reportedly risen by up to 61% on key services such as scans, ultrasounds, and bed charges, are unsustainable.
In a statement, AAR Insurance said the cost hike raised serious concerns about long-term affordability for members. “With our customers’ best interests at heart, we engaged The Nairobi Hospital in open and constructive discussions, aiming to agree on a more sustainable, volume-based model that would safeguard both quality and affordability.
Despite sincere efforts from both parties, we were unable to reach mutually acceptable terms. As a result, AAR Insurance member access to The Nairobi Hospital will be temporarily suspended effective Monday, 11 August 2025,” the insurer said.
Similarly, CIC Group informed its staff that services at the hospital would be suspended from Tuesday, 12 August 2025. The company noted that the revised charges could not be sustained, “not even with a premium revision,” and that negotiations with the hospital had failed to yield an agreement.
Most of the affected insurers are expected to implement the suspension next week. The development comes amid ongoing wrangles within The Nairobi Hospital’s leadership, with stakeholders urging both the facility and insurers to find a resolution to safeguard patient access to quality healthcare.
Written By Rodney Mbua
