Eight major insurance companies in Kenya have announced the suspension of their services at The Nairobi Hospital, citing what they term as an unsustainable spike in the cost of treatment at the premier private health facility.
The affected insurers are Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR Insurance, CIC Group, and Pacis Insurance.
The decision follows the hospital’s recent review of its pricing structure, which reportedly saw the cost of key services — including scans, ultrasounds, and bed charges — rise by as much as 61 percent.
In a statement, AAR Insurance explained that while they had engaged the hospital in “open and constructive discussions” to agree on a sustainable, volume-based pricing model, the talks failed to produce a compromise.
“With our customers’ best interests at heart, we engaged The Nairobi Hospital… Despite a sincere effort from both parties, we were unable to reach mutually acceptable terms. As a result, AAR Insurance member access to The Nairobi Hospital will be temporarily suspended effective Monday, 11 August 2025,” the insurer stated.
CIC Group also confirmed the suspension, set to take effect from Tuesday, August 12, stating that the revised charges are “not only unsustainable but also cannot be remedied, not even with a premium revision.” The insurer said the move is intended to protect the sustainability of the policies it manages and the financial health of its operations.
The suspension by the eight insurers will mean thousands of policyholders will have to seek alternative hospitals for treatment from next week.
The Nairobi Hospital, which has recently faced internal wrangles in its management, has yet to issue an official response to the mass pull-out. However, the development raises questions about the affordability of private healthcare in Kenya and the impact of escalating medical costs on insurance coverage.
