Nairobi Hospital doctors still demand leadership change amid ongoing power struggles
The Nairobi Hospital in this picture taken on September 14, 2024.
Consultant doctors at Nairobi Hospital have called for an overhaul of the board as power wrangles continue to rock one of Kenya's premier health institutions.
They have also questioned the hospital management's decision to borrow Sh4.2 billion, arguing that there's no justification for committing the institution to such a huge loan.
Charles Wambugu, a member of the Kenya Hospital Association, the organisation that owns the hospital, said the doctors were frustrated and wanted the hospital back on its feet with new management.
“Our wish is to have this hospital go back to the level where it was. This is why we would like to have a new board to straighten the affairs of the hospital,” he said.
The doctors say the Sh4.2 billion loan that the hospital is seeking makes no sense as the hospital earns enough and does not need to borrow such a huge amount.
Robert Shaw, a member of KHA and a former board member of the hospital, said the need to take out a loan of that magnitude offshore is a red flag.
“Nairobi Hospital for many years has been making profits and those profits have accrued and the hospital has financially been in very good shape with quite a lot of money that has been re-invested. Now the board wants to borrow Sh4.2 billion on an offshore loan using the hospital’s assets as collateral. This just does not add up,” he said.
Luke Musau, also a member of KHA and a doctor at the hospital, questioned why the hospital chose to borrow offshore as opposed to sourcing for the money through local banks.
“Sh4.2 billion can be syndicated within local banks. Offshore borrowing is a very expensive exercise and because this is pegged on hospital property, it is a point of concern,” he noted.
The doctors also took issue with the fact that the loan, despite it being taken offshore against hospital assets, has not been authorised by members of KHA.
Mr Wambugu said there was a clear disregard for the governance policies that were put in place to ensure the hospital runs smoothly.
Nguru Wachira, also a member of KHA, questioned the loan, said, “There seems to be a disconnect between the KHA and the board of management. The loan represents 35 percent of the current hospital assets, which is a significant percentage. It is a concern that of the Sh4.2 billion, there is Sh2 billion is not specified [as to] what items it will buy.”
At a board meeting in June, the management decided to use the Sh4.2 billion it plans to borrow to purchase Sh2.4 billion worth of medical equipment, Sh970.4 million for equipment maintenance, Sh215.8 million for furniture and fittings, Sh50.1 million for software, Sh41.8 million for vehicles and Sh19.2 million for infrastructure improvements.
The doctors also noted that the dispute has now affected operations at the hospital, with some doctors opting to attend to their patients at other facilities.
