The Kenya Hospital Association (KHA), owners and operators of The Nairobi Hospital has welcomed the High Court’s ruling allowing the hospital to proceed with capital projects and equipment upgrades.
In a statement on Monday, March 24, Board Chairman Dr. Barcley Onyambu said the ruling by Justice Peter Mulwa upholds the integrity and legality of the hospital’s governance processes.
Further, he noted that the decision safeguards transparency, good governance, and financial stability, ensuring the hospital can continue providing world-class healthcare.
“With the discharge of the court orders previously restricting our operations, we shall endeavour to deliver service at optimal levels.
“We remain focused on our mission to offer world-class healthcare services and will continue engaging with all our members in accordance with the Association’s Articles and the Companies Act,” stated the hospital.
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Ruling on Nairobi Hospital Case
The ruling comes after Justice Mulwa declined an application by Dr. Samuel Mithamo Muchiri, who sought to block the hospital’s capital expenditures and resolutions passed during the December 4, 2024, Annual General Meeting (AGM).
The judge noted that Dr. Muchiri’s case was closely linked to two other ongoing matters and directed that they be consolidated to prevent conflicting rulings.
Therefore, he directed that the case be mentioned on April 28 for possible consolidation to avoid conflicting rulings.
The hospital had opposed the court orders issued on February 11, arguing that it urgently needed to replace ageing medical equipment, some of which were no longer supported by manufacturers.
It specifically cited the Linear Accelerator, a critical cancer treatment machine acquired in 2012, which had reached its mechanical “End-of-Life.”
However, the hospital defended its Ksh4.2 billion loan, stating that it was necessary for the purchase of vital medical equipment, including MRI and CT scan machines, which had already been procured through tenders.
The court heard that blocking the hospital from using the loan could expose it to legal liabilities amounting to hundreds of millions of shillings.
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Ongoing Infrastructure at the Hospital
Also, the hospital informed the court about ongoing infrastructure projects, such as the construction of a labour ward, a cardiac centre, and the conversion of the second floor into doctors’ rooms.
Management warned that stopping these projects could lead to legal action since tenders had already been awarded with strict timelines.
The management also emphasized that new equipment would enhance service delivery, improve patient care, and generate revenue.
Dr. Muchiri had initially obtained orders blocking these projects, including resolutions passed during the hospital’s December 4, 2024, Annual General Meeting (AGM).
Represented by lawyer Nelson Havi, he argued that the AGM was conducted in violation of the Companies Act and the Articles of Association.
Moreover, he claimed that 333 new members were admitted without proper vetting and without making the required payments before the meeting.
The decision comes days after a multi-agency team, comprising the Directorate of Criminal Investigations (DCI), the Assets Recovery Agency (ARA), and the Kenya Revenue Authority (KRA), raided the hospital and seized documents.
Authorities said they were investigating allegations of abuse of office, conspiracy to commit crimes and money laundering.
Board chairman Dr. Barcley Onyambu welcomed the probe and assured full cooperation, stating that it was in the hospital’s best interest.
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