Background: Customer satisfaction in the healthcare industry has gained attention from researchers and healthcare practitioners as a recognized field of scholarly work. In services industry, particularly in the health sector, due to presence of tough competition,the customer-base of loyal customer may not be broadened without giving individual care and attention to customers. There is a general assumption in Kenya that private sector health services are of better quality and therefore patients visiting private health facilities are generally more satisfied with the services compared to those in public facilities.However, very little research has been done, in this regard to better understand the extent of customer satisfaction and loyalty in private hospitals and what healthcare managers need to do in a competitive environment to satisfy and retain their customers.Objectives: i) To describe practices, policies and regulations on customer satisfaction at AKUH and critically examine how these have contributed to customer satisfaction and loyalty at the satellite clinics; ii) To estimate the proportion of satisfied customers and assess their loyalty to the AKUH medical services; iii) To recommend to healthcare managers the best practices that contribute to customer satisfaction and loyalty. Methods: This study was conducted in two satellite clinics of the Aga Khan University Hospital. It was a cross-sectional descriptive survey design. Data were collected using semi-structured and open-ended interviews. Thematic content analysis (TCA) was used to analyze qualitative data. Descriptive statistics was used to analyze quantitative data which were presented in summary tables and graphs.Findings: There are continuous attempts by health care managers to improve service quality to ensure satisfaction and loyalty of customers. The management was also found to be proactive to address customer as they arise without delays. The other key finding was that customers are served quite fast without having to wait in long queues. Service quality and trust between customers and service providers at the satellite clinics positively contributed to customer loyalty. Conclusion: The lesson learnt from the study is that with a proactive management and empowered employees, the organization can achieve enormous gains to propel the organization to greater heights.