The Nairobi Hospital is facing simultaneous pressure from its largest medical insurance partners and internal governance challenges.
- •At least eight major insurers — including CIC General, GA Insurance, AAR Insurance, Old Mutual, First Assurance, Pacis, Madison, and Britam — have suspended the hospital from their credit medical provider panels,
- •The insurers are citing a sharp upward revision in service charges, and their suspension dates range from August 11 to August 13, 2025.
- •In an August 9 position statement, Nairobi Hospital's CEO Felix Osano defended the adjustments, saying they were necessary to maintain the high standards of care patients expect.
According to Osano, independent comparisons showed the revised rates remain competitive against peer institutions offering similar expertise. The hospital has invited all affected insurers to a consultative forum on August 11, aiming to reach a “mutually agreeable solution that safeguards patient care and sustains access to quality medical services.”
Industry Pushback on Tariffs
In letters to clients and the hospital, insurers said the tariff increases, in some cases up to 61 percent, were unsustainable and would undermine the affordability and long-term viability of medical cover. They warned that the new charges risk depleting policy limits faster and forcing mid-term premium hikes.
- •CIC General called the rates “not only unsustainable, but those that cannot be remedied, not even with a premium revision.”
- •GA Insurance warned the changes would “significantly impact your limits being faster depleted” and drive up claims costs.
- •AAR Insurance described the increase as “not sustainable over the long term,” adding that it had over 2,000 accredited alternatives.
- •Madison General said the hike could “result in much higher healthcare costs for our members in the long term.”
While terms vary by insurer, most will honor bills for patients admitted before the suspension dates, but will not process new claims from Nairobi Hospital once the suspensions take effect.
The Nairobi Hospital's Internal Turmoil
An internal memo dated August 6 from Board Chairman Prof. Herman Manyora instructed the CEO to cancel a planned trip to China, terming it “unauthorized” and noting that such engagements require board approval. The rare public disclosure of board intervention is the latest in long-running governance tensions at the institution.
Boardroom politics have escalated in recent months, with the hospital disputing the election of Prof. Manyora as chair of the Kenya Hospital Association (KHA), which oversees the hospital. The dispute with Dr. Barcley Onyambu over the position escalated in early July, and the board is also facing a lawsuit by former chair Chris Bichage, who was ousted in 2024.
The insurance dispute places patients in a difficult position, with many forced to either pay out-of-pocket at Nairobi Hospital or seek treatment elsewhere. With all major underwriters except a few smaller players now suspending services, the hospital faces immediate revenue and reputational pressure.
The August 11 meeting between Nairobi Hospital management and insurers will be critical. A failure to reach agreement could see the standoff extend, forcing a longer-term reshaping of patient flows in Nairobi’s high-end healthcare market.
