Business

KRA drops Nairobi Women's Hospital from list

KRA drops Nairobi Women's Hospital from list
  • The move by the taxman comes a day after insurance providers cut their links.

State bodies have now joined the tide as institutions move to cut their ties with Nairobi Women’s Hospital after reported claims of bill inflation by the healthcare provider.

The Kenya Revenue Authority (KRA) has sent out a memo to all its staff notifying them that it had suspended the facility from its list of service providers.

In an internal memo, the Deputy Commissioner of Human Resources, Mr Mukuriah Nelson, said the suspension will stand until such a point when contentious issues between KRA and the hospital are resolved conclusively.

"This is to inform you that the Nairobi Women's Hospital has been suspended from the KRA list of approved medical service providers with immediate effect,” he said in the memo dated February 5.

The move by the taxman comes a day after all health insurance providers, led by Jubilee, Britam, AAR, Old Mutual and CIC Group, suspended services at the hospital.

The firms said they would no longer reimburse both inpatient and outpatient claims in any of the hospital's branches.

The Association of Kenya Insurers (AKI) said that the decision was arrived at after a meeting of medical insurance company CEOs. They noted that there are several administrative issues concerning the hospital which disadvantage insured customers.

“This is contrary to the interest of medical insurers which is to ensure that customers get the best services at competitive rates,” said AKI.

They, however, noted that the suspension will remain in force pending a thorough review of the quality and cost of the hospital’s services and that it will not affect insured customers already admitted.

The association said it will engage with service providers through their respective associations to address most, if not all, the issues affecting the medical insurance business.