Kenyans could pay more for healthcare next year as the cost of medical services is projected to increase by 13 percent in 2027, raising concerns about the affordability of treatment and the cost of health insurance.
A new report by London based professional services firm Aon forecasts that Kenya’s medical inflation will reach 13 percent next year, slightly lower than the 13.5 percent recorded in 2026. Despite the slowdown, the projected increase remains above the global average of nine percent.
The 2027 Global Medical Trend Rates Report attributes the rising costs to higher prices of essential goods, increased hospital visits, expensive medicines and growing dependence on imported medical products.
The rising cost of treatment is also putting pressure on insurance companies, which may be forced to increase premiums to keep up with growing claims and hospital charges. Patients are already experiencing higher expenses for consultations, laboratory tests and medicines. Increased use of outpatient and specialised medical services has also contributed to the growing pressure on healthcare providers and insurers.
The Nairobi Hospital recently proposed price increases ranging from 2.07 percent to 61.3 percent, equivalent to between Sh70 and Sh5,000, covering services such as CT scans, MRI tests, ultrasound, X-rays, hospital beds and intensive care. However, the hospital suspended the changes following objections from insurance companies.
Employees covered under employer-sponsored medical insurance could also feel the impact as companies review their healthcare benefits to control spending. This could result in higher co-payments, deductibles and other expenses paid directly by workers.
Aon noted that the projected 13 percent increase would be the first slowdown in Kenya’s medical inflation in five years. The rate rose from 9.8 percent in 2023 to 12.5 percent in 2024 before reaching 13 percent in 2025.
Kenya’s projected medical inflation is also significantly higher than its expected general inflation rate of 5.9 percent, showing that healthcare costs are rising faster than the overall cost of living.
Across Africa, Kenya ranks ninth among 19 countries covered in the report. Ethiopia leads with a projected increase of 35 percent, followed by Angola at 25.5 percent, Egypt at 23 percent and Nigeria at 20.9 percent.
Aon says imported medicines and the rising cost of private and specialised healthcare continue to drive medical inflation across the continent, even as easing foreign exchange pressures and lower general inflation offer some relief.