Board Members Raise Alarm Over Alleged Mismanagement and Financial Crisis at The Nairobi Hospital
A section of board members at The Nairobi Hospital, led by Chairman Job Obwaka and members of the Kenya Hospital Association, have raised serious concerns over what they describe as the “systematic collapse” of the once-prestigious medical institution.
In a strongly worded statement, the board members cited alleged financial mismanagement, ballooning debts running into billions of shillings, and failure by senior management to comply with binding High Court orders.
Admitting Doctors Association of Nairobi Hospital
According to the aggrieved officials, the hospital recorded a loss of approximately Sh3 billion in 2024 and currently owes suppliers an estimated Sh4 billion, a situation that has reportedly led several suppliers to suspend the delivery of medicine, drugs, and essential medical commodities.They claim patients are now complaining about drug shortages and alleged substandard medication, further eroding public confidence in the institution.
Alleged Disregard of High Court OrdersThe board members stated that on July 4, 2025, the High Court issued interim conservatory orders restraining the defendants from convening board meetings and retreats.
They further noted that similar orders were reaffirmed in December last year.
However, they allege that the Chief Executive Officer and the Company Secretary have failed to honor these directives, escalating tensions within the hospital’s leadership and deepening the governance crisis.“We cannot sit back and watch a historic institution crumble under the weight of alleged corruption, poor leadership, and disregard for court directives,” one board member stated.
The officials argue that failure to comply with court rulings undermines the rule of law and exposes the hospital to further legal and financial risks.
Financial and Operational Crisis.
According to the board members, the hospital is currently grappling with:
Massive accumulated debtsDelayed supplier paymentsSuspension of critical medical suppliesLow staff moraleDeclining public trustThey described the situation as the worst crisis the hospital has faced since its establishment decades ago.
Call for Immediate ActionThe concerned officials are demanding urgent intervention, including:An immediate forensic audit of the hospital’s financesFull compliance with court directives Leadership accountabilityGovernment and regulatory oversight
They insist that sweeping reforms are necessary to restore transparency, financial stability, and patient confidence.
A Legacy at Stake Founded decades ago, The Nairobi Hospital has long been regarded as one of Kenya’s leading private healthcare institutions.
However, the current leadership wrangles and financial strain now threaten to overshadow its legacy of medical excellence.The board members have vowed to pursue all legal and institutional mechanisms available to protect the hospital and ensure accountability.
