Health Kenya

Nairobi Hospital stable, profitable and ‘not collapsing’, board declares

By Eddah Waithaka

Management presents verified financial data showing revenue recovery, KES 33 million surplus, and growing patient numbers

The Nairobi Hospital is financially stable, operationally strong, and on a clear recovery trajectory, firmly dispelling recent claims that the institution is collapsing or requires external intervention.

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Hospital Chairman Dr Barcley Onyambu and Chief Executive Mr Felix Osano presented verified financial and operational data at a press briefing on Thursday, directly countering what they termed as misleading narratives circulating in the public domain.

“Our revenues stood at approximately KES 12.8 billion in 2024 and KES 11.8 billion in 2025, with the latter impacted by a temporary insurance suspension. More importantly, we are now seeing recovery, with monthly revenues stabilising at approximately KES 1.03 billion in early 2026,” said Mr Osano.

Year-to-date performance reinforces this recovery, with revenue growing by eight per cent in early 2026 compared to the same period last year. The Hospital has also recorded a KES 33 million surplus, reversing a prior deficit.

Strong operational indicators

Key service lines continue to show robust performance. Admissions have risen by five per cent, while oncology services have recorded over 100 per cent growth, driven largely by support to Kenyatta National Hospital under a Ministry of Health memorandum of understanding.

Bed occupancy now stands at approximately 59 to 63 per cent.”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,” Mr Osano added.

He clarified that figures circulating in the public domain are inaccurate and misleading. Reports of a KES 4.2 billion loan are incorrect, and the 2025 deficit has narrowed significantly to KES 815 million, reflecting improved financial management.

“The claim that KES 9.1 billion is missing is not factual. The audited position reflects a KES 2.214 billion deficit in 2024, largely driven by legacy and one-off adjustments that have since been addressed. The Hospital continues to meet its obligations while managing receivables, including KES 2.4 billion owed, largely by public healthcare schemes,” he said.

‘Governance matter, not institutional failure’

Dr Onyambu emphasised that the current situation has been mischaracterised as an institutional failure, when in fact it is a governance matter playing out in the public domain.

“The Nairobi Hospital is stable, operational, and continues to provide care across all departments. What is being presented as institutional collapse is not reflective of the reality on the ground,” he said.

Also Read : https://africawatchnews.co.ke/nairobi-hospital-assures-public-we-are-fully-operational-and-stable/

He added, “The Nairobi Hospital is not facing a capability problem; it is facing the misuse of governance mechanisms to advance narrow interests.”

The Board raised concern over what it described as a pattern in which a small group of individuals uses litigation to halt governance processes, escalates selective narratives externally, and disrupts institutional operations to advance personal and commercial interests.

“This is not a broad stakeholder position. It is a concentrated effort by a small group whose actions risk destabilising the institution,” Dr Onyambu said.

National healthcare role and investments

Despite these challenges, The Nairobi Hospital continues to play a critical role in Kenya’s healthcare system.

Through collaboration with the Social Health Authority, the Hospital supports patient overflow from Kenyatta National Hospital, Jaramogi Oginga Odinga Teaching and Referral Hospital, and other public facilities.

It also provides services to Teachers Service Commission beneficiaries and prepares to support the National Police Service from 1 April.

The Hospital maintains a diversified investment portfolio totalling approximately KES 1.349 billion, including government bonds valued at KES 1.175 billion that have generated capital gains of KES 81.7 million.

Recent investments in modern equipment include an AI-enabled 256-slice CT scanner and a cone-beam dental CT scanner.

The Hospital has attained ISO certifications in quality management, environmental management, and occupational safety and health, and is currently pursuing Joint Commission International accreditation.

“We will continue to discharge our mandate responsibly and ensure that this institution remains stable, credible, and focused on patient care,” Dr Onyambu concluded.

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