The Nairobi Hospital has announced that it has restored full insurance coverage of services at its facilities, ending more than two months of strained relations with major underwriters that disrupted its operations.
In a joint statement released after a meeting with stakeholders on Wednesday, the hospital's Chief Executive Officer, Felix Osano, said that the hospital and its insurance partners had reached a mutual agreement after weeks of discussions aimed at rebuilding trust and ensuring uninterrupted access to care.
This development comes as a relief to patients who have been affected by the standoff, some of whom have been forced to seek treatment elsewhere midway through their care, and others who have had to pay in cash.
“This favourable resolution demonstrates our shared commitment to ensuring continuous, high-quality healthcare access for our clients,” said Mr Osano. “Our relationship with insurers goes beyond healthcare transactions; it is strategic and purpose-driven, unified in service to our patients. Through collaboration, transparency, and operational efficiency, we will continue to strengthen claims processes and enhance the overall patient experience.”
“This positive outcome affirms what can be achieved when we approach challenges with openness, shared purpose, and a commitment to long-term partnership,” added Dr Barcley Onyambu, chairperson of the Kenya Hospital Association (KHA) Board.
“It is important that we communicate with one voice to reassure clients that coverage has been fully reinstated and that our joint efforts remain focused on patient welfare, trust, and service excellence.”
The resolution follows weeks of negotiations between hospital management and insurance executives, which were prompted by disputes over new hospital tariffs that led to a suspension of coverage in August.
The standoff began in early August when Nairobi Hospital introduced new service charges, including higher rates for imaging, diagnostics, and accommodation, provoking sharp criticism from insurers, who described the changes as abrupt and unsustainable.
In turn, eight major insurance companies, including Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR Insurance, CIC Group, and Pacis Insurance, jointly suspended medical services for their clients at the hospital.
The companies accused the hospital of implementing the price changes without sufficient consultation, warning that the increases would make healthcare unaffordable for thousands of policyholders.
In response, Nairobi Hospital temporarily suspended the new pricing structure and invited insurers to negotiate. While maintaining that the tariff adjustments were necessary to cover rising operational costs, inflation, and investments in modern medical equipment, the hospital acknowledged the importance of reaching a consensus.
