NAIROBI, Kenya — Following a significant increase in treatment costs at The Nairobi Hospital, eight major insurance companies have suspended their services at the facility.
This move, which comes into effect next week, is a direct response to the hospital’s recent price hike, which reportedly increased some key services—including scans, ultrasounds, and bed charges—by as much as 61%.
The affected insurers include Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR, CIC, and Pacis Insurance.
The decision was driven by concerns over the long-term affordability for their members. In a statement, AAR Insurance noted its attempts to negotiate a more sustainable agreement with the hospital.
“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,” the statement read in part.
“Despite a sincere effort from both parties, we were unable to reach mutually acceptable terms this as a result, AAR Insurance member access to The Nairobi Hospital will be temporarily suspended effective Monday, 11 August 2025.”
Similarly, CIC Group informed its staff of the decision, stating that the new rates are unsustainable. The company explained that its negotiations with the hospital failed to produce a mutually agreeable solution.
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“We have been engaging The Nairobi Hospital on the cost of care at their facility. As you may be aware, and may have picked from the reports (specifically average cost report) that we share with you, the provider has significantly revised their prices,” the statement read in part.
“We consider their rates not only unsustainable, but those that cannot be remedied, not even with a premium revision. As our intention is to safeguard the sustainability of the policies we administer and the operations of our organization, we have been engaging the provider on the revision but have regrettably not been able to reach a mutually agreeable position.”
The suspension of services is scheduled to begin next week, with CIC Group’s suspension starting on Tuesday, August 12, and AAR Insurance’s taking effect on Monday, August 11.
