Medical premiums in Kenya could rise this year as hospital bills climb, with Aon projecting a 13.5 percent increase in healthcare costs in 2026. The projection, against a global average of 9.8 percent, adds pressure on insurers whose claims have nearly doubled in five years. Employers that sponsor staff medical cover face the same pressure.
Aon’s Global Medical Trend Rates Report 2026 projects that healthcare costs in Kenya will rise 13.5 percent this year, compared with a global average of 9.8 percent. That gap suggests Kenya faces cost pressures well above those seen in many other markets. The projection feeds directly into the premium calculations insurers use to price medical cover.
The strain is already visible on company-sponsored medical covers. Report shows that bills on these schemes rose 13 percent in the previous year, above the global average. Employers have responded by asking staff to share more of the cost through co-payments and higher contributions.
Medical insurance claims have nearly doubled in five years to Sh52.61 billion. Medical cover accounted for 41 percent of the Sh227.16 billion general insurance market in 2025, making it one of the largest lines for insurers. As claims rise, insurers have less room to absorb higher hospital charges without adjusting premiums.
Market concentration shapes how insurers respond. Jubilee Health, AAR and Old Mutual lead medical insurance and together control over 63 percent of the market. Their pricing decisions carry weight across the sector.
The dispute over hospital fees has sharpened the debate. The Nairobi Hospital raised charges by up to 61 percent, prompting insurers to protest and threaten to reject claims at the new prices. Insurers have also accused private hospitals of inflating bills through exaggerated pricing, unnecessary tests and costly branded drugs.
Insurers are also feeling pressure on their own finances. Insurance Regulatory Authority data show medical insurers posted an underwriting loss of Sh468.35 million in 2024, down from Sh1.79 billion in 2023. Premium increases are one of the main levers insurers can use to restore margins.
For households and employees, the impact will depend on how cover is structured. Families on individual plans may face higher premiums at renewal, while employees on company schemes could see more costs shifted to them. Lower-income households could feel the squeeze most.
The next signal will come as insurers announce renewal rates and as hospitals respond to the dispute over charges. Watch for changes to premium schedules, any regulatory moves on pricing, and whether employers redesign their medical schemes.
