The Nairobi Hospital Chief Executive Officer (CEO) James Nyamongo has been suspended indefinitely days after he was sent on compulsory leave.
The CEO has been on annual leave after board members representing the Kenya Hospital Association (KHA) which manages the medical facility voted in favor of the decision.
Days after Nyamongo was sent on leave, KHA Chairman Dr. Chris Bichage in a letter dated December 30 directed that the embattled does not return to the office until the Board of Management advises accordingly.
Dr. Bichage made reference to a letter dated November 22 regarding the embattled CEO’s leave.
“We refer to our letter dated 22 November 2024, ref. TNH/ADMIN/BOM/22/11/2024 regarding your annual leave. Due to unavoidable circumstances, you shall not return to the office until the Board of Management advises accordingly,” the letter reads.
Nyamongo’s fate came after earlier boardroom wars in July this year when members of the Kenya Hospital Association called for an extraordinary general meeting.
In a petition addressed to the KHA board, the members of the requisition group who cited a loss of confidence the board directors’ leadership listed 13 directors, including Chairman Dr. Chris Bichage and Vice Chairman Philemon Mwaisaka.
Nairobi Hospital Boardroom wars
The owners alleged that the Nairobi Hospital board members had breached their legal and fiduciary duties towards the company and its interests.
“The cited failures of the board include but are not limited to: collectively passing resolutions to accept and issue tenders contrary to the hospital’s procurement manual, to be funded through overseas borrowings amounting to astronomical sums of approximately Ksh2 billion, using the company’s assets as collateral without informing or obtaining approval from the members, without considering alternative financing, thereby jeopardizing the company’s assets and indeed the existence of the company if the company is unable to repay the proposed astronomical loans,” reads the petition drafted by the KHA requisition committee.
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Members on the other hand criticized both the board chairman Dr. Bichage and his vice for failures in leadership and management of the company.
Some of the cited failures include involvement in conducting and chairing meetings of the Board of Directors to make resolutions that went against the company’s Articles of Association, human resources manual and procurement manual.
Also, in August this year, the Nairobi Hospital board was forced to address a series of allegations levelled against the facility.
Allegations addressed
Dr. Bichage in a statement on September 13, 2024, spoke about various reports against the hospital which included alleged financial constraints, tribal recruitment, poor governance corruption and mismanagement.
The board chairman in the statement refuted the allegations saying that they were being peddled around are choreographed out of frustration by unnamed individuals.
“On behalf of the Board of Management, I dare say that the allegations of corruption and poor governance being peddled around are choreographed out of frustration by individuals who have failed to manipulate our sound governance structures for their own selfish gain and have now resorted to mounting a smear campaign against the Hospital,” reads part of the statement.
“I urge journalists to challenge these people to table evidence of the allegations they are making against the Board of Management because that is what responsible journalism is all about.”
While responding to the allegations of corruption and mismanagement that are said to have been raised by a section of KHA members, the Board chair said that the allegations of conflict of interest, cronyism and nepotism, are unsubstantiated.
The hospital’s board chair further challenged anyone who has evidence of corruption within the medical facility to come forward and table it, adding that anyone found guilty will be brought to book as per the laid down policies and procedures.
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On the hospital facing a financial crisis, Bichage provided an update on the financial performance in which he said that the institution’s financial base is healthy, adding that bed occupancy has been averaging above 70%.
Nairobi Hospital Addresses Allegations of Financial Crisis
He highlighted that the hospital’s staff salaries get paid by the 24th of every month and that the staff’s low-interest mortgage and car loan facility is already being utilized.
Also, the Nairobi Hospital board addressed allegations of ethnicity in its staff recruitment process.
The response by the Nairobi Hospital Board came following reports that the hospital has in the years been marred with corruption and bribes which threaten to sink the operations of the facility.
In addition, reports alleged that there was a lack of transparency in the recruitment process and that the hospital was being marred with financial challenges.
The statement came after the boardroom wars which saw members of KHA call for an extraordinary general meeting earlier in July.
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