Nairobi Hospital faces a critical fight for its continued existence
Nairobi Hospital Faces Potential Liquidation
One of Kenya's most iconic medical institutions, the Nairobi Hospital, is at risk of closure due to a creditor's petition. The hospital is currently embroiled in a legal battle with Opticom K. Limited over an unpaid debt of approximately Sh51 million related to a security systems contract.
The hearing for the creditor's petition was scheduled at the High Court's Commercial and Tax Division on August 13, 2025, at 9 am. However, the immediate outcome on that date involved the court declining to certify the matter as urgent but directing parties to file their responses with further directions scheduled for November 6, 2025.
The Nairobi Hospital is contesting the petition, arguing that the dispute relates to contractual issues that require arbitration. The hospital claims that liquidation would threaten essential healthcare services and its operational viability.
Beyond this legal battle, the hospital is also grappling with a major financial challenge. Eight leading insurance companies have suspended their services due to a 61% tariff hike by the hospital. The insurers include Old Mutual, First Assurance, Minet, Britam, Madison Insurance, AAR, CIC, and Pakis Insurance. The hospital is currently engaging insurers in dialogue to resolve the impasse.
The Nairobi Hospital, a prominent medical institution in Kenya, has been serving Kenyans and the East African region for over 70 years. The potential closure of the hospital threatens its long-standing service to the Kenyan and East African community.
References:
- Nairobi Hospital's liquidation case adjourned to November 6
- Nairobi Hospital on brink of closure as insurers withdraw services
- Nairobi Hospital in fresh crisis as insurers withdraw services
- Nairobi Hospital's liquidation case adjourned to November 6
- Nairobi Hospital's liquidation case adjourned to November 6
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