An increase in the cost of medicine, check-ups and medical procedures at the Nairobi Hospital has prompted eight major insurance companies to suspend their services at the health facility.

The insurance companies —First Assurance, Minet, Pacis Insurance, Madison Insurance, AAR, Old Mutual, Britam, and CIC—in independent official statements obtained by the Nation all explained that the hike affected long-term affordability for most of their members.

“Recently, the Nairobi Hospital announced a significant upward revision of its service charges. The magnitude of these increases is, in our assessment, not sustainable and could result in much higher healthcare costs for our members in the long term,” Madison Insurance warned.

“To protect the value of your cover, we engaged The Nairobi Hospital in open and constructive discussions to agree on a fair, sustainable pricing model that balances quality and affordability.

“Despite genuine efforts on both sides, we were unfortunately unable to reach terms that safeguard our members’ best interests at this time,” Samuel Chege, the managing director at Madison, explained in an official statement dated August 8, 2025.

Mr David Obonyo, the General Manager, Britam Health, told its customers to seek healthcare in its 1,800 accredited providers as it finds a solution on the Nairobi Hospital issue.

“While we respect their commitment to enhancing the service delivery, the scale of the changes presents challenges in maintaining affordable healthcare for our clients. We have been in active discussions with the hospital to find a balanced solution that supports both quality care and cost sustainability. Despite sincere efforts, we have not yet reached an agreement,” says Mr Obonyo.

Mr Stephen Lokonyo, the Managing Director at First Assurance, agrees with Mr Chege.

“We hereby confirm your suspension from providing medical services to our insured clients with effect from 12th August 2025. Kindly note that after the said date, no new claims will be admissible. We shall settle our outstanding claims in the usual manner,” he told Nairobi Hospital, while adding that they remain open to collaborative engagement to realize sustainable costs.

Like the other insurers, Old Mutual said that their suspension of Nairobi Hospital also takes effect on August 12 this year.

“This suspension is intended to allow our teams to negotiate a recent increase in prices, which is likely to affect the sustainability of your policy and result in a significant premium increase,” Ken Omami, the General Manager, told the Nairobi-based health facility.

Wincate Mukando, the Associate General Manager–Healthcare Division at Minet, also wrote to the Nairobi Hospital, indicating that provision of medical services to clients under its schemes would be halted with effect from August 12, 2025.

Kang’e McDonald, the General Manager–Medical Division at CIC Group, told Nairobi Hospital in a letter that the revised rates are unsustainable.

“Effective 12th August, we will suspend access to The Nairobi Hospital and all their satellite clinics. To ensure continuity of care, we will cater for the bills of members who may already be admitted at the time of the suspension,” the General Manager said, while instructing the health facility not to admit any of their members from the said date.

Belinda Kubania, the head of medical business at Pacis Insurance, said of the suspension: “The decision follows discussions with the hospital in relation to recent unilateral price adjustments, which pose significant impact on the sustainability of the medical insurance plans we provide.”

While responding to the ‘mass suspension’ in an official statement on Saturday, Nairobi Hospital told the public that general consultative meetings are currently underway with the leadership of medical insurance companies to address recent concerns on tariff adjustments.

“We have invited representatives of all affected insurers to a consultative forum scheduled for Monday, August 11, 2025, with the aim of reaching a mutually agreeable solution that safeguards patient care and sustains access to quality medical services,” Mr Felix Osano, the CEO of Nairobi Hospital, said in an official statement.

He added: “We recognise the concerns raised by our insurance partners but reiterate that the tariff adjustments are necessary to maintain the high standards of healthcare our patients deserve. Independent comparisons indicate that our revised rates remain competitive and fair when measured against peer institutions offering equivalent levels of care and expertise.”