A year after it began operations at its new facility on Kiambu Road, Kenya’s AAR Hospital is reducing staff in a cost-cutting measure. The Sh2.5 billion 140-bed hospital for outpatient and inpatient services commenced construction in 2017.
In a memo seen by News Central, the chief executive officer Dr. Ken Muma said jobs would be declared redundant as the hospital streamlines operations due to dwindling revenues.
“The intended redundancy is due to the fact that the volume of work at our facility has not grown as initially projected, and therefore the company cannot sustain the current workforce,” Muma explained.
AAR Group is a holding company which operates insurance units and primary care hospitals in East Africa, including the hospital in Kenya.
AAR Healthcare (K) Limited is the largest provider of outpatient healthcare services in the East Africa region, running a network of 19 medical centres in Kenya.
AAR started operations in Kenya in 1984, offering medical evacuation services by road and air. The company expanded to Tanzania in 2007, Uganda in 1994 and Kigali operations where it unveiled in 2005.