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Fresh troubles escalate crisis at Nairobi Hospital
Nairobi Hospital CEO Felix Osano has been accused of mismanagement.
The woes facing Nairobi Hospital appear far from over as the Kenya Hospital Association (KHA) accuses the facility’s management of governance failures that have left its operations in a deplorable state.
Just two months into his tenure, Chief Executive Officer (CEO) Felix Osano has been accused of increasing patient charges by 61 percent without board approval, unlawfully terminating the contracts of senior staff and presiding over deteriorating infrastructure.
Mr Osano has also been accused of leading an unauthorised delegation to China. He has, however, dismissed the claims, insisting the hospital is financially stable and not in debt.
The association’s Board chairperson Herman Manyora accused Mr Osano and the hospital’s Secretary Gilbert Nyamweya of undermining the board’s efforts to restore the facility to its former glory.
“You are aware that there is an active matter before the courts concerning governance issues at the hospital, but as this case proceeds, the Board, under my leadership, remains steadfast in its commitment to bring as much stability as possible within the hospital’s operations. Unfortunately, these efforts have been consistently undermined by the two, who have continued to conduct themselves in a manner that grossly disregards the authority of the board,” Mr Manyora said in a letter to staff, seen by the Nation.
Mr Manyora further claimed that eight health insurance companies have suspended their partnerships with the hospital over the increased patient charges.
These include Old Mutual, CIC, Britam Health, AAR, First Assurance, Heritage, Kenindia, Kenya Alliance, G.A Madison, Fidelity, and Minet.
The suspension prompted a crisis meeting between the hospital and the insurers to address the dispute.
Mr Manyora warned that the board is contemplating disciplinary action against Mr Osano and Mr Nyamweya.
“They will be held fully accountable for their actions, the reputational harm they have caused, and the instability they have inflicted on this institution,” he said.
In response, Mr Osano said that during the meeting — which was attended by Dr Barcley Onyambu and other board members — it was agreed to suspend the new prices with immediate effect.
“The decision, made in good faith, responds to requests from our valued insurance partners to allow for further consultation and collaborative dialogue,” he said in a statement, adding that the revised pricing structure was designed to align with the hospital’s commitment to patient-centered care.
Nairobi Hospital has been dogged by boardroom wrangles in recent years. The turmoil began with the controversial ouster of chairman Dr Chris Bichage, who moved to court challenging his removal, arguing it violated the hospital’s articles of association and his right to a fair hearing.
The High Court’s Commercial and Tax Division is set to hear a petition tomorrow by creditor Opticom K Limited, which is seeking to have the hospital declared insolvent over alleged unpaid debts.
The facility is also facing other legal battles. Last week, former CEO James Nyamongo sued the hospital for Sh100 million, claiming wrongful dismissal in November 2024.
He is seeking compensation for breach of contract, salary for the remainder of his term, unpaid leave, provident fund, gratuity, and reputational damage.
Two weeks ago, the hospital was ordered to pay another former CEO, Dr Allan Pamba, Sh206 million for unlawful termination of his contract.
