Nairobi Hospital has expressed its support for the Attorney General’s (AG) decision to seek court orders allowing the Directorate of Criminal Investigations (DCI) to conduct a thorough review of its governance and financial operations.
In a statement, the hospital’s administration reaffirmed its commitment to transparency and accountability, emphasising that the investigation is in the institution’s best interests, both operationally and reputationally.
“Given the series of legal developments in recent years, we believe this step will help clarify any concerns regarding our governance. We remain fully committed to complying with the directive while ensuring uninterrupted care for our patients,” the statement read.
The AG’s directive comes amid growing scrutiny of the hospital’s management and financial practices. The DCI is expected to commence its review in the coming days. Last week, the court granted the AG authority to investigate the hospital’s premises and the residences of its senior managers. Chief Inspector Martin Munene has also been authorised to access and examine company records held by the hospital, its senior officials, and affiliated entities.
Additionally, the court has granted the DCI full access to the hospital’s and senior managers’ databases, computers, and electronic records as part of the investigation. In February, the hospital stated that it remained committed to delivering high-quality healthcare despite the challenges it faces. Through the Kenya Hospital Association (KHA), acknowledged recent interim court orders obtained by a member of the association, which temporarily suspended governance and financial operations.
The orders halted the implementation of resolutions regarding the election of board directors and trustees on 4 December 2024. “This decision sets a dangerous precedent where an individual can disrupt the functioning of a hospital that serves thousands of patients daily and employs over 2,500 medical professionals,” the hospital’s statement read. The suspension will remain in place pending the hearing and determination of the case.
The hospital’s acting CEO, Felix Osano, confirmed that while the institution would comply with the court order, it would also seek legal redress. “The restrictions and inconveniences notwithstanding, as a law-abiding institution, we fully respect the judicial process and will comply with the orders while seeking appropriate remedies before the court,” he stated.
The legal dispute arose after Samuel Mithamo Muchiri filed a case against the hospital’s board of management and trustees, accusing them of financial impropriety. Muchiri alleges that the defendants failed to file an updated index of members with the Registrar of Companies and engaged in serious acts of malfeasance, breaching their duty to act in the institution’s best interests.
Additionally, he claims that the hospital has incurred losses exceeding Ksh.1.5 billion and is burdened with supplier debts amounting to nearly Ksh.3 billion. Despite these challenges, the hospital has reassured the public that healthcare services will continue uninterrupted. “We remain committed to ensuring uninterrupted healthcare services while navigating the legal process,” the statement added.
However, the CEO warned that the court’s temporary restrictions on governance and financial operations could adversely affect service delivery to thousands of patients daily.
