Nairobi Hospital bosses charged after year-long court battle, freed on Sh5m bond

The embattled chairman of Nairobi Hospital and three top officials of the premier health facility have been charged after a year-long legal battle to block their prosecution at the High Court.

They were charged with illegally receiving over Sh8 million from an insurer and failing to file financial returns with the registrar of companies.

Dr Job Lukuru Obwaka, 80, Dr Chris Bichange Nyamaratandi, lawyer Samson Mbuthia Kinyanjui and Dr Valerie Akinyi Gaya were arraigned at the Milimani Law Courts on Monday, March 16, 2026, after being held in custody for more than 30 hours.

The four were arrested, questioned and detained in alleged defiance of a High Court order issued on August 28, 2025, by a judge at the Milimani High Court.

“I urge the court to take judicial notice that the accused herein were arrested, questioned and detained in blatant violation of a High Court order of Justice Nixon Sifuna of August 28,2025,” defence lawyer Levi Munyeri for Dr Obwaka told the trial magistrate.

Law Society of Kenya president Charles Kanjama told the court that the office of the Director of Public Prosecution (DPP) is expected to take serious action over the violation of the court order by the police.

Besides the order of Justice Sifuna, Mr Kanjama also furnished the court with another High Court order where Kibera High Court judge, Diana Kavedza, had barred the police from arresting the directors of Kenya Hospital Association Limited (KHAL), commonly known as Nairobi Hospital.

Detain the applicants

“The Directorate of Criminal Investigations (DCI), Chief Inspector Martin Munene are at liberty to investigate or charge the applicants (Dr Valerie Akinyi Gaya and 12 others) for any criminal conduct. However, they shall not arrest or detain the applicants,” Justice Kavedza ordered when she granted them an anticipatory bond of Sh100,000.

The four Nairobi Hospital directors were released on a personal bond of Sh5 million after denying five counts filed against them by the DPP.

Dr Obwaka, Dr Nyamaratandi, Mr Kinyanjui, and Dr Gaya were jointly charged with failing to file with the Registrar of Companies statutory financial returns of KHAL (Nairobi Hospital) on or before December 31, 2024.

Dr Nyamaratandi faced a separate charge of failing to file Nairobi Hospital’s 2023 financial returns with the Registrar of Companies.

Dr Obwaka was separately charged with conflict of interest and receiving a benefit of Sh4,800,000 from Meritorious Insurance Agency, a company contracted by KHAL (Nairobi Hospital).

Mr Kinyanjui was also charged with a conflict of interest by allegedly receiving Sh3,999,995 from Meritorious Insurance Agency.

They all denied the charges. After the prosecuting counsel, Willie Momanyi, said that the DPP was not opposed to the accused being freed on bail, the trial magistrate, Teresia Nyagena, allowed the plea for release on bond.

“I have carefully considered the nature of the offences and the status of the accused persons who are not in the class of flight risks. I therefore order their release on a personal bond of Sh5 million with two contact persons each,” the magistrate ruled.

The magistrate, however, warned the accused persons that their bonds risk being cancelled should they fail to abide by the bond terms.

She directed the prosecution to supply the accused persons with the evidence material within 14 days.  

The four were charged with offences relating to their roles as directors of the Kenya Hospital Association Limited, the entity that operates the Nairobi Hospital.

According to the charge sheet, Nyamaratandi — represented by defence lawyer Danstan Omari — was charged with a conflict of interest in his capacity as a director of KHAL, contrary to the Companies Act. This was for allegedly receiving payments from a company doing business with the hospital.

The prosecution states that between November 10, 2023 and March 15, 2024, Nyamaratandi received Sh4.8 million from Meritorious Insurance Agency, a firm contracted by Kenya Hospital Association Limited, thereby creating a conflict with the interests of the company.

Conflict of interest

Mr Kinyanjui is accused of receiving Sh3,999,996 from the same insurance agency between December 23, 2024 and March 17, 2025, while serving as a director of the association.

The prosecution alleges the payment constituted a conflict of interest under the Companies Act.

The four directors have also been charged jointly with failing to submit the company's financial statements to the Registrar within the stipulated time frame.

Court documents indicate that the company failed to submit financial statements for the years 2022, 2023 and 2024 as required by law.

"On or before December 31, 2024, at Nairobi Hospital in Nairobi County, jointly with others not before the court, while serving as directors of Kenya Hospital Association Limited, failed to lodge with the Registrar the company’s financial statements for the year 2024," the charges stated.

Defense lawyers urged the court to impose lenient bail terms, arguing that the offences were minor and carried relatively low penalties.

Lawyers Cliff Ombeta, appearing for Nyamaratandi alongside Omari, Shadrack Wambui and Sam Nyaberi, asked the court to allow the accused to rely on the anticipatory bail earlier deposited in court.

“The personal bond or the cash bail of Sh100,000 earlier deposited in court can apply,” Mr Ombeta submitted.

Mr Kanjama and Mr Munyeri, for Dr Obwaka, told the court that the offences carried a maximum penalty of Sh200,000 and did not warrant strict bail conditions.

“The maximum penalty does not exceed Sh200,000. This is not a matter that ought to attract harsh bail terms,” Kanjama said.

He further told the court that his client was not serving as a director when some of the alleged offences were committed and asked the court to consider his age and medical condition.

“Dr Obwaka is a senior citizen, a gynaecologist who served this nation for over 50 years. He is 80 years old and suffers from medical conditions. These are not offences of potential gravity and the court should consider a cash bail of Sh10,000,” Mr Kanjama added.

Another defence lawyer, Rogers Sagana, also presented a High Court order issued by Justice Nixon Sifuna.

The magistrate nevertheless ordered that each accused person be released on a Sh5 million personal bond with two contact persons.

The matter will be mentioned for pre-trial on March 31, 2026.

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