Nairobi Hospital moves to quell raging governance storm amid outcry over insurance rates

Martin Mwanje
4 Min Read
The Nairobi Hospital leadership while addressing the press on August 18, 2025

The Nairobi Hospital is moving with lightning speed to address a range of governance issues that have been threatening to tear it apart in the recent days.

Amid the leadership wrangles pitting two factions, the facility – respected regionally for its outstanding healthcare services – has reaffirmed its financial stability, operational strength, and commitment to delivering healthcare with a difference.

In a joint press conference of the Board of Management and Board of Trustees, the hospital leadership outlined the decisive actions being taken to safeguard the institution’s future and reputation.

It emphasised its strong financial position, noting that the petition filed by a creditor, Opticom Kenya Ltd, is a legal matter being actively contested in court, while constructive engagement continues towards a resolution.

Led by the hospital’s Chief Executive Officer Felix Osano, the leadership also says all staff salaries, supplier obligations, and ongoing investments are being met without disruption.

“Our continuing modernisation programme has benefitted from Kshs. 1.5 billion in infrastructure upgrades funded entirely from internally generated revenues, with no loans – clear evidence of prudent financial stewardship,” Osano noted.

The infrastructure upgrades in question include six state-of-the-art labour and delivery suites designed for privacy, comfort, and optimal maternal and neonatal care; a 256-slice AIenabled CT scanner that provides rapid, high-definition imaging with reduced radiation exposure; and a new Cardiac Centre equipped with East and Central Africa’s first biplane catheterisation laboratory in a laminar flow theatre suite.

“Each of these projects is a strategic investment to expand clinical capacity, improve patient outcomes, and reinforce the hospital’s leadership in specialised care,” Osano added.

He indicated that in July this year, the leadership implemented a marginal average tariff adjustment of 5% following a comprehensive cost analysis and benchmarking exercise, a move that some insurance partners responded by suspending services.

However, following constructive meetings, the hospital rescinded the adjustments to allow for further dialogue, and patients are now accessing services at pre-adjustment rates.

Commenting on the suspension of price adjustments, Osano emphasised that, “This was a decision reached in mutual goodwill, and driven by commitment to responsible engagement that prioritises patients while sustaining quality care.”

On his part, the Chairman of the hospital’s Board of Management, Dr. Barcley Onyambu acknowledged that certain decisions by previous boards fell short of fiduciary responsibility and exposed the institution to financial and reputational risks.

According to him, the current Board of Management and Board of Trustees are fully aligned in strengthening accountability, ensuring prudent decision-making, and preventing recurrence.

The leadership is also banking on the lifting of recent court-imposed restrictions to enable the resumption of critical infrastructure and equipment investments.

“This is more than a legal victory; it is a turning point that demonstrates our stability, reinforces our capacity to deliver on our long-term mission,” said Dr. Onyambu.

 

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