Eight insurance companies suspend services from Nairobi Hospital

The eight companies include Madison Insurance, ⁠First Assurance, ⁠Minet, ⁠Old Mutual, ⁠Britam, ⁠AAR, ⁠CIC and ⁠Pacis Insurance. 

For instance, AAR Insurance noted that the hike in the recent cost raises concerns about long-term affordability for its 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," 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."

CIC Group, on the other hand, wrote to its staff members saying it will suspend the services from Tuesday, August 12. 

"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."

A majority of the companies have planned to suspend their services next week. The leadership of the wrangles-ridden hospital is reported to have increased the cost of services by as high as 61 per cent on key services such as scans, ultrasounds and bed charges.