NAIROBI, Kenya — The Nairobi Hospital is facing mounting liquidity pressure after the State accumulated Sh1.23 billion in unpaid bills, deepening the facility’s financial strain.
According to a report by Business Daily, the hospital’s management said the outstanding debt from government-related entities is materially affecting its cash flow and operational stability.
Chief Executive Officer Felix Osano noted that the unpaid amounts from key debtors have had a “material impact” on the hospital’s liquidity position.
The growing arrears come amid broader governance and financial challenges at the private referral facility, which has recently faced internal disputes and rising operational costs. The delayed payments have complicated the hospital’s ability to meet supplier obligations and maintain service delivery.
Medical institutions in Kenya have increasingly warned that delayed reimbursements and unpaid claims from public schemes and government agencies are undermining operations, with hospitals forced to absorb costs while waiting for settlement.
The liquidity squeeze at Nairobi Hospital highlights wider financing pressures in the health sector, where facilities depend heavily on timely payments from insurers and government programmes to sustain staffing, procurement, and critical services.
Analysts warn that prolonged delays could affect service provision and investment in new medical infrastructure.
