Eight major insurance companies have suspended their services at Nairobi Hospital due to an increase in treatment costs at the facility.
The eight companies are namely Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR, CIC, and Pacis Insurance.
One of the companies, AAR Insurance, noted that the new prices are a serious concern in the long run for its members.
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“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.
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,” said ARR through a statement
The same statement was shared with the CIC group, who noted that the prices are unsustainable and thus their services will be suspended from Tuesday, August 12th.
“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.
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,” they said
Investigations into the prices revealed that Nairobi Hospital had hiked its prices by 61% for key services such as scans, ultrasounds and bed charges.
