Nairobi Hospital halts fee increase after insurers raise alarm

Several insurers had temporarily withdrawn services at the hospital earlier this month, citing the rise in treatment costs triggered by the rate adjustment.
The Nairobi Hospital has suspended its planned five per cent increase in medical fees after insurance companies and patients raised concerns over possible disruptions in healthcare access.
The decision was reached following engagements between the hospital’s management and leading insurers, even as the facility continues to face internal governance wrangles that have played out publicly.
Several insurers had temporarily withdrawn services at the hospital earlier this month, citing the rise in treatment costs triggered by the rate adjustment.
The move unsettled patients and staff, with some families opting to move care to other facilities.
In a statement released on Friday, August 15, 2025, the hospital said the decision to increase charges was driven by rising expenses in both imported and local medical products such as pharmaceuticals, equipment, and other critical supplies.
"Given the prevailing economic circumstances where the costs of both imported and local medical products have risen, TNH marginally reviewed upwards the prices of certain medical products and services by an average of five per cent. This was done after a comprehensive analysis of rising costs in pharmaceuticals, equipment and other essential supplies, benchmarked against peer institutions. Even with these adjustments, our tariffs remained competitive within the market," the hospital stated.
The management stressed that the withdrawal of the new rates demonstrates its focus on patient care and collaboration with insurance providers.
"The hospital wishes to reassure all its patients that the rates remain as they were before adjustments. We are ready to work with our insurance partners to ensure flawless service to our patients."
The hospital, the largest standalone private medical facility in Eastern, Southern, and Central Africa, has also been struggling with boardroom disputes that have added pressure to its operations.
It further advised insured patients to confirm their cover with providers to avoid confusion, while assuring the public that services are being offered at the previous charges.
“We encourage patients to contact their insurers directly for confirmation of coverage and seek clarification on any disruption they are experiencing to their care,” the hospital emphasised.