Nairobi Hospital dismisses collapse claims, says facility financially stable

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NAIROBI, Kenya, Mar 19 – The Nairobi Hospital on Thursday said it remains financially stable and operationally sound, dismissing claims that the private healthcare facility is facing collapse or requires external intervention.Speaking at a press briefing in Nairobi, board Chairman Barcley Onyambu and chief executive officer Felix Osano presented financial and operational data indicating the hospital continues to function normally while recovering from temporary setbacks linked to an insurance suspension.Osano said the hospital generated about Sh12.8 billion in revenue in 2024 and Sh11.8 billion in 2025, with the latter affected by the disruption. Monthly revenues have since stabilised at roughly Sh1.03 billion in early 2026, signalling a recovery trend.Year-to-date performance reflects the rebound, with revenue rising by about 8 percent compared to the same period last year and a Sh33 million surplus recorded, reversing an earlier deficit.Operational indicators also showed growth, including a 5 percent increase in patient admissions and a sharp rise in oncology services, which more than doubled following support provided to Kenyatta National Hospital under a memorandum of understanding with Kenya’s health ministry.Bed occupancy at the hospital currently stands between 59 percent and 63 percent, according to management.“These are not the indicators of an institution in distress. They are the indicators of a hospital that is functioning, serving patients, and strengthening its performance,” Osano said.Hospital management also rejected what it described as inaccurate figures circulating publicly about its financial position.Osano dismissed reports that the hospital had taken a Sh4.2 billion loan and said claims that Sh9.1 billion was unaccounted for were incorrect. He explained that audited accounts showed a deficit of Sh2.214 billion in 2024, largely due to legacy and one-off adjustments that have since been addressed, while the 2025 deficit narrowed significantly to about Sh815 million.He added that the hospital continues to meet its financial obligations while managing receivables of about Sh2.4 billion, mainly owed by public healthcare schemes.Onyambu said recent public debate had mischaracterised the situation as an institutional failure, describing it instead as a governance dispute involving a small group of individuals.“The Nairobi Hospital is stable, operational, and continues to provide care across all departments,” he said. “What is being presented as institutional collapse is not reflective of the reality on the ground.”He added that the hospital operates within the governance framework of the Kenya Hospital Association, noting that the role of patron—traditionally held by Kenya’s sitting president—is ceremonial and does not involve operational or governance decisions.The board also raised concern over what it described as repeated litigation by a small group seeking to halt governance processes and advance personal interests, warning that such actions risk destabilising the institution.Despite the governance disputes, the hospital said it remains fully operational and continues to support Kenya’s healthcare system through partnerships, investment in advanced medical technology and adherence to international quality standards.Management said it would continue safeguarding governance structures while focusing on patient care and service delivery.On March 17, William Ruto pledged that the government would take all necessary steps to restore The Nairobi Hospital to its status as one of Kenya’s leading healthcare institutions, amid a widening governance and legal crisis.Speaking during a tour of the Western region, the President warned that no individual or group would be allowed to “hold it hostage,” urging decisive action against any attempts to exploit the institution for personal gain.State House had clarified that the President’s involvement followed formal petitions from stakeholders—including doctors, patients and members of the Kenya Hospital Association—who raised concerns over internal leadership disputes, governance challenges and mounting litigation threatening the hospital’s operations.State House Press Office said the President’s role stems from both his constitutional mandate and his position as Patron of the Kenya Hospital Association, a role he assumed in 2023.