Hospital in Nairobi halts price increases following uproar from insurance providers
In a significant development, The Nairobi Hospital has announced the suspension of its planned price hikes for medical products and services, effective immediately. The decision comes after intense pushback from major insurance providers who had initially suspended services at the hospital in early August 2025 as a protest against the proposed increases.
The price hikes, which were due to take effect on August 12, included a rise in the cost of ICU charges to Sh45,000 per day, CT scans to Sh30,000, and Pap smear and HPV tests from Sh5,000 to Sh16,000. The proposed increases led to an average 5% rise in the cost of medical products and services, but some reports indicated that certain treatment costs had surged by up to 61%.
The insurance providers who protested against the revised rates included CIC, Britam, Old Mutual, AAR, and Minet. AAR Insurance had expressed concern over the upward revision of service rates at The Nairobi Hospital, stating that the magnitude of the increases was not sustainable over the long term. The company aimed to agree on a more sustainable, volume-based model that would safeguard both quality and affordability, but they were unable to reach mutual acceptable terms. CIC called the rates "unremediable."
Following these developments, The Nairobi Hospital's CEO, Felix Osano, noted that the open and constructive discussions with the insurance providers addressed concerns regarding the proposed pricing structure, ensuring alignment with shared commitment to patient-centered care. Osano reiterated that The Nairobi Hospital remains dedicated to upholding its mission to deliver accessible, high-quality healthcare to the community.
Osano emphasized that The Nairobi Hospital remains committed to fostering strong partnerships with all stakeholders. He added that they look forward to continued engagement with their insurance partners to ensure sustainable solutions. The hospital's Director of Medical Services, Samuel Odede, explained that the original price review was driven by rising costs of medical supplies and pharmaceuticals, but acknowledged the insurers' concerns.
After high-level talks in mid-August, the hospital suspended the hike to allow further consultations and maintain collaboration. Discussions are ongoing to reach a mutually acceptable pricing structure that ensures affordability and sustainability. The meeting with insurance providers was held on Monday.
In summary, The Nairobi Hospital has suspended its proposed price hikes amid insurer backlash. Major insurers like CIC, Britam, Old Mutual, AAR, and Minet had suspended services at the hospital in protest in early August 2025. After high-level talks in mid-August, the hospital suspended the hike to allow further consultations and maintain collaboration. Discussions are ongoing to reach a mutually acceptable pricing structure that ensures affordability and sustainability. The Nairobi Hospital remains committed to continued engagement with its insurance partners to ensure sustainable solutions that prioritize the well-being of its patients.
- The insurance providers' backlash against The Nairobi Hospital's proposed price hikes has led to a suspension of the increases, as announced by the hospital's CEO.
- The government's episodic paper should cover the recent development where major insurance providers suspended services at The Nairobi Hospital due to the planned price hikes.
- In the realm of politics, the hospital's decision to suspend the price hikes might have significant implications for future negotiations on healthcare funding in the country.
- The move to suspend price hikes and engage in further consultations is a testament to The Nairobi Hospital's commitment to maintaining affordable health-and-wellness services and fostering strong partnerships with finance institutions like insurance providers.
