Nairobi, Kenya – A creditor has taken the extraordinary step of asking Kenya’s High Court to wind up the Kenya Hospital Association, the operator of Nairobi Hospital, over alleged unpaid debts. Opticom K. Limited filed an insolvency petition on 11 August, arguing that the prestigious private hospital is unable to pay what it owes and should therefore be placed under liquidation. The petition will be heard on 13 August.

The move highlights mounting financial pressures facing Nairobi Hospital, long considered a leading medical facility in East Africa. In recent months several insurers have suspended services for their clients at the hospital, citing high costs and delayed reimbursements. Industry analysts say the withdrawal of insurance partners has squeezed the hospital’s cash flow and forced it to renegotiate payment terms with suppliers and staff.

Opticom’s petition alleges that Nairobi Hospital has ignored statutory demands and continues to trade while insolvent. If the court grants the request, a liquidator would be appointed to take control of the hospital’s assets, settle debts and potentially sell the property. Hospital management has not publicly responded to the petition but sources say it plans to oppose the liquidation and instead seek a restructuring plan.

Healthcare advocates worry that placing the facility into liquidation could disrupt services for thousands of patients and jeopardise jobs. They urge the parties to pursue mediation or a court‑supervised restructuring that preserves essential healthcare services. The case comes as Kenya’s healthcare sector grapples with rising costs and persistent funding gaps, prompting calls for comprehensive reforms.

As the hearing date approaches, the court will have to decide whether the financial strain is temporary or indicative of deeper insolvency. The outcome could set a precedent for other private hospitals facing similar debt crises in the wake of economic headwinds and increased operational costs.