Busia Senator Okiya Omtatah has filed a fresh petition at the High Court seeking to halt The Nairobi Hospital’s upcoming AGM scheduled for Friday Omtatah moves to court to stop Nairobi Hospital AGM over alleged Sh9.1B financial mismanagement and governance crisis.
In an urgent application lodged yesterday at the Constitution and Human Rights Division in Milimani High Court, Omtatah alongside Activists Bernard Muchiri Muchere and Naomi Nyakerario Misati are demanding immediate court intervention to prevent what they describe as an “irreversible governance catastrophe”
Omtatah has accused the hospital’s leadership led by its board chairperson Prof. Herman Manyora, CEO Felix Osano and other officials listed as respondents in the case of presiding over what they term “systemic mismanagement” that has pushed the institution to the brink of operational collapse.
The trio argue that allowing the AGM to proceed onFebruary 6, 2026, would be a travesty of justice given the contested legitimacy of the membership register that determines voting rights at the meeting.
“Once the AGM is held, irreversible governance actions will be undertaken, including elections, ratifications, and resolutions, which will fundamentally alter the governance structure of the Kenya Hospital Association and render the substantive Petition nugatory,” the petitioners warn in their certificate of urgency.
At the center of the petition are serious allegations of financial meltdown at the 70-year-old institution, including the mysterious disappearance of approximately Sh 9.1 billion in accumulated depreciation funds.
“Only Sh 572 million is traceable in cash equivalents,” the court papers states, petitioners raising serious questions about the whereabouts of billions meant for asset replacement and institutional sustainability.
The petition paints a grim picture of an institution in financial freefall, with audited losses exceeding Sh 3 billion and a staggering Sh 2 billion deficit recorded in 2024 alone despite the hospital generating revenues of Sh12.86 billion that year.
Supplier arrears have reportedly ballooned past Sh 4 billion, threatening the hospital’s operational capacity and its ability to deliver critical healthcare services.
“We are concerned that The Nairobi Hospital is facing an imminent institutional collapse driven by severe governance failures, financial mismanagement, and leadership conflicts,” Senator Omtatah states in the supporting affidavit.
The petitioners also flag unexplained spikes in legal and professional expenses, which jumped by Sh 290 million to reach Sh 680 million in a single year, alongside irregularities in debt collection.
Beyond the financial crisis, the court papers reveal an alleged governance paralysis characterized by factional board infighting that has sidelined critical oversight committees including the Medical Advisory Committee, potentially compromising patient safety and clinical standards.
In what the petitioners describe as a scheme to manipulate institutional control, they allege that 333 individuals were irregularly enrolled into the KHA membership register through a single bulk payment of Sh 5 million by one person identified as Anne Bosibori Omari.
“This was purportedly to manipulate control of the institution and bypass proper vetting processes,” the petition alleges, describing the scheme as a deliberate attempt to pack the membership roll and influence the upcoming AGM.
The activists argue such financial inducement into membership violates constitutional principles and renders any decisions taken at the contested AGM fundamentally tainted and illegitimate.
Senator Omtatah and his co-petitioners contend that The Nairobi Hospital is not an ordinary private entity but rather a public trust institution sitting on 21.8 acres of prime public land granted by the colonial government in 1952 specifically for healthcare delivery.
“The hospital occupies public land under strict conditions including nominal annual rent and a ‘public purpose’ clause that permits government reclamation without full compensation in cases of misuse,” the petition states.
The petitioners alleges that governance has been “captured through factional board infighting that has paralyzed decision-making” and sidelined essential oversight mechanisms including the Medical Advisory Committee, raising grave concerns about clinical standards and patient safety.
“Governance has allegedly been captured through factional board infighting that has paralyzed decision-making, sidelined essential committees including the Medical Advisory Committee, raising risks to clinical standards and patient safety,” the activists state.
The case also accuses multiple state agencies for their alleged failure to act despite credible evidence of wrongdoing and existing court orders.
The 25 respondents named include the Kenya Hospital Association, its Board of Management, individual directors, and government entities including the Director of Criminal Investigations, Ethics and Anti-Corruption Commission, National Land Commission, Attorney General, Asset Recovery Authority, Director of Public Prosecutions, and Kenya Revenue Authority.
“Despite the formation of a Multi-Agency Team to investigate, bodies such as the Directorate of Criminal Investigations, Ethics and Anti-Corruption Commission, and others have allowed probes to go cold or stall, even after prior court directions,” teh activist states,
Senator Omtatah and his team are seeking sweeping court orders including an immediate injunction stopping Thursday’s AGM, expunging the 333 allegedly irregular members from the register, freezing any sale or transfer of hospital land, and compelling state agencies to conduct comprehensive forensic audits covering the past decade.
“We seek orders compelling state agencies to urgently investigate, conduct forensic audits including a 10-year review, preserve assets, and report back within specified timelines such as 45 or 60 days,” the petition states.
The activists also want the court to declare The Nairobi Hospital a public trust institution subject to heightened constitutional scrutiny and accountability standards.
“We warn that unchecked failure would erode public confidence, compromise healthcare access, and undermine Kenya’s standing as a medical leader in the region,” Senator Omtatah warns in the court documents.
The case is pending directions and hearing.
