Abstract:
Private hospitals in Kenya provide over 47% of the healthcare services to the general population of over 51 Million people
in Kenya. Despite their importance, their sustainability has been at risk, threatening provision of health services of Kenyans,
achievement of social pillar under Kenya’s vision 2030. The study investigated the effect of investment management practices on the
sustainability of private hospitals in Nairobi County, Kenya. The study was guided by agency theory. The study used positivism
approach and employed descriptive and explanatory research design. The target population was all the tier 3 and 4 licensed private
hospitals in Kenya which were 68. Census was adopted. Primary data was collected using standardized closed questionnaires as the
main research instruments. Data analysis was done using SPSS. Descriptive and inferential statistics used to analyse were simple
means; standard deviations, frequency tables, and correlations. Model R- Square, ANOVA Statistics and regression coefficients R were
used to test the hypothesis of bivariate model. Results showed that investment management practices, had a positive and significant
effect on sustainability of private hospitals in Kenya. The study concluded that investment management practices had a statistically
significant relationship with sustainability. Investment management practices had an R2
of 39.3% explaining sustainability. The study
recommends that first, private hospitals should continuously build capacity of the investment management functions as they have a
significant relationship with sustainability of hospitals.