The Nairobi Hospital has halted its proposed price review following urgent talks with major insurance providers, averting potential cost increases for patients.

The decision, announced on Monday, August 11, comes after a high-level meeting between the hospital’s management and representatives from leading insurers, including Old Mutual, CIC, Britam Health, AAR, and Minet.

The hospital had initially planned to adjust its pricing structure, sparking concerns from insurers about affordability and patient access. However, after what was described as “open and constructive” discussions, both parties agreed to suspend the changes to allow for further negotiations.

“Following a productive strategic meeting held today with key insurance providers, The Nairobi Hospital has agreed to suspend the implementation of its recently announced price review, effective immediately,” the hospital’s CEO, Felix Osano, announced in a statement.

“This decision, made in good faith, responds to requests from our valued insurance partners to allow for further consultation and collaborative dialogue.”

Insurers raised issues about the potential ripple effects of higher medical costs, particularly for policyholders. The hospital assured stakeholders that any future pricing adjustments would align with a “patient-centred care” approach.

The Nairobi Hospital emphasised its commitment to working closely with insurers to develop sustainable solutions.

“The Nairobi Hospital remains dedicated to fostering strong partnerships with all stakeholders while upholding its mission to deliver accessible, high-quality healthcare to the community.

“We look forward to continued engagement with our insurance partners to ensure sustainable solutions that prioritise the well-being of our patients,” added Osano.

The suspension takes immediate effect, offering temporary relief to patients and insurers alike. Further consultations are expected in the coming weeks to finalise a revised pricing framework.

Insurers had earlier objected to the sharp and sudden increase in treatment fees, leading them to temporarily suspend services at the hospital following reports that the price review could push costs up by as much as 61 per cent.

One insurer argued that such an increase was unsustainable as it would compromise long-term affordability for its members. In a separate move, another insurer notified its staff that it would halt services starting Tuesday, August 12.

Behind the scenes, Nairobi Hospital is grappling with a governance dispute, with a letter from its Board of Management—chaired by Herman Manyora—accusing the CEO and Company Secretary of making decisions without board approval.

The board alleged that the price increase, which led to insurers’ temporary withdrawal, was introduced unilaterally, violating governance procedures.

It also raised concerns over the hospital’s reportedly deteriorating infrastructure, arguing that neglecting basic repairs reflects shortcomings in leadership.