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The High Court stops the Nairobi Hospital AGM after Senator Omtatah files a petition alleging a Sh9.1 billion financial scandal and deep governance rot.

The crisis at Kenya’s premier private medical facility has deepened, with the judiciary stepping in to halt a critical meeting as allegations of billion-shilling mismanagement fly.
The High Court has issued a conservatory order stopping the Nairobi Hospital from holding its highly anticipated Annual General Meeting (AGM), originally scheduled for today. This dramatic legal intervention follows a petition filed by Busia Senator Okiya Omtatah, who has blown the whistle on a governance dispute that threatens to cripple the institution. The court's decision effectively puts the hospital's leadership in limbo pending the hearing of the explosive case.
At the center of the storm is a staggering allegation of financial impropriety. The petitioners claim that a mysterious "black hole" of Sh9.1 billion has been identified in the hospital's accounts—funds that are allegedly unaccounted for. This financial mystery, coupled with vicious boardroom wars, has painted a picture of an institution at war with itself, prioritizing internal power struggles over its core mandate of saving lives.
Senator Omtatah’s petition is a litany of governance failures. He argues that allowing the AGM to proceed would have been a rubber stamp for illegality, potentially cementing the positions of directors who are under scrutiny. The "missing" billions are said to be related to accumulated depreciation funds and other capital reserves that have reportedly vanished from the books without a clear audit trail.
The court agreed that the gravity of these allegations warranted an immediate pause. Justice Peter Mulwa, in his ruling, noted that the risk of irreversible damage to the hospital’s governance structure was too high to ignore. The order prevents the Kenya Hospital Association (KHA)—the owners of the facility—from conducting any business that would alter the current board composition or ratify the disputed financial statements.
The boardroom battles are having a chilling effect on the hospital’s operations. Staff morale is reportedly at an all-time low, and donors and partners are watching with growing unease. The Nairobi Hospital has long been the gold standard for healthcare in East Africa, but this reputational damage could take years to repair.
This is not the first time the hospital has faced leadership wrangles, but the scale of the financial figures mentioned this time is unprecedented. As the legal teams sharpen their arguments for the upcoming hearing, the patients and the public are left wondering: who is looking out for the sick while the "doctors" of governance fight over the ledger books? The court’s pause button provides a momentary breathing space, but the surgery required to fix Nairobi Hospital’s governance rot will likely be long, painful, and invasive.
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