Small Business

How to Start a Hospital in Kenya: Requirements, Costs, and Licensing Process

hospital ward

The healthcare sector in Kenya is rapidly growing, creating opportunities for investors looking to establish medical facilities. Whether you’re setting up a small dispensary, a maternity home, or a full-fledged hospital, you must comply with strict regulations set by the Kenya Medical Practitioners and Dentists Council (KMPDC).

In this guide, we’ll explore the essential requirements for starting a hospital in Kenya, including legal, operational, and financial obligations.


Understanding the Kenyan Healthcare System

Hospitals in Kenya are classified into different levels:

  1. Level 1 – Community health units
  2. Level 2 – Dispensaries
  3. Level 3 – Health centers
  4. Level 4 – Sub-county hospitals and private medical centers
  5. Level 5 – County referral hospitals
  6. Level 6 – National referral hospitals (such as Kenyatta National Hospital)

Each category has specific licensing requirements, fees, and operational standards.


Key Requirements for Starting a Hospital in Kenya

To start a medical institution in Kenya (dispensary, clinic, nursing home, or hospital), you must meet the following criteria:

1. Business Registration

  • Register the hospital as a business entity under the Business Registration Service (BRS).
  • Obtain a Certificate of Incorporation from the Registrar of Companies.
  • Choose a business structure: Sole Proprietorship, Partnership, Limited Company, or NGO.

2. Licensing from KMPDC

The Kenya Medical Practitioners and Dentists Council (KMPDC) is responsible for approving and licensing medical institutions.

  • Pay Ksh 1,000 to obtain Form IX (Application for registration).
  • Submit the completed form, signed by a Medical Officer of Health (MOH).
  • Provide certified copies of medical personnel’s professional qualifications and licenses.
  • Ensure the hospital’s architectural plans are approved.
  • For hospitals, include a mortuary/storage facility plan.

3. Staff and Medical Practitioners

A hospital must have qualified and registered medical staff, including:

  • Doctors, nurses, and specialists licensed by KMPDC.
  • Pharmacists licensed by the Pharmacy and Poisons Board.
  • Laboratory technologists licensed by the Kenya Medical Laboratory Technicians and Technologists Board (KMLTTB).

4. Facility Standards and Infrastructure

  • The hospital must meet hygiene, safety, and operational standards set by the Ministry of Health.
  • If providing inpatient care, ensure there are admission beds and an ICU (for higher-level hospitals).
  • Install a pharmacy, radiology unit, and theatre (if offering surgical services).

5. Inspection and Accreditation

  • A team from KMPDC will inspect the facility before licensing.
  • A comprehensive report must be submitted by the inspection team.

Fees for Licensing a Medical Facility in Kenya

1. Dispensary (Outpatient facility)

FeesAmount (Ksh)
Application1,000
Registration5,000
Annual License5,000

2. Medical Clinic (Private outpatient clinic)

FeesAmount (Ksh)
Application1,000
Registration5,000
Annual License10,000

3. Eye Clinic

FeesAmount (Ksh)
Application1,000
Registration5,000
Annual License10,000

4. Nursing Home

FeesAmount (Ksh)
Application1,000
Registration10,000
Annual License20,000

5. Maternity Home

FeesAmount (Ksh)
Application1,000
Registration10,000
Annual License20,000

6. Level 4 Hospital

FeesAmount (Ksh)
Application1,000
Registration20,000
Annual License50,000

7. Level 5 Hospital

FeesAmount (Ksh)
Application1,000
Registration30,000
Annual License80,000

8. Level 6 Hospital

FeesAmount (Ksh)
Application1,000
Registration30,000
Annual License100,000

Other Regulatory Approvals Needed

Aside from KMPDC licensing, you must comply with other Kenyan laws:

1. County Government Licenses

  • Obtain a Single Business Permit from the County Government where the hospital will operate.
  • Pay county land rates and rental fees.

2. National Environmental Management Authority (NEMA) Approval

  • Conduct an Environmental Impact Assessment (EIA).
  • Obtain an EIA Certificate before construction begins.

3. National Construction Authority (NCA) Permit

  • Required if constructing a new medical facility.
  • Ensures building safety and compliance with Kenyan construction standards.

4. Kenya Bureau of Standards (KEBS) Certification

  • If importing medical equipment, ensure they meet KEBS standards.

5. SHA Accreditation

  • Get SHA accreditation to accept SHA-insured patients.

Challenges of Starting a Hospital in Kenya

  1. High Initial Capital Costs
    • Medical equipment, construction, and staff salaries require significant investment.
  2. Bureaucratic Licensing Process
    • Delays in approvals from government agencies.
  3. Shortage of Skilled Medical Professionals
    • Hiring specialized doctors and nurses can be challenging.
  4. Competition from Public and Private Hospitals
    • Private hospitals must offer competitive services to attract patients.

How to Succeed in the Healthcare Business in Kenya

Starting a hospital in Kenya requires compliance with regulations, substantial capital investment, and strong management skills. Whether you’re launching a small clinic or a Level 6 hospital, ensure you have:

Proper licensing from KMPDC
Qualified medical staff
Adequate facilities and equipment
SHA accreditation for patients

Investing in technology, telemedicine, and affordable healthcare solutions can help your facility stand out.

Want to Start a Hospital in Kenya?

Contact Kenya Medical Practitioners and Dentists Council (KMPDC) for detailed guidance:

📧 info@kenyamedicalboard.org
📞 +254 720 771 478 / +254 738 504 112
🌐 www.medicalboard.co.ke