Nairobi Hospital Board, CEO in bitter clash over hiked treatment costs, governance
This follows the announcement by eight leading insurance companies of a temporary suspension of their services at Nairobi Hospital, citing a sharp increase in treatment costs.
Nairobi Hospital is facing a governance and operational crisis as its Board of Management and top executives clash over recent decisions.
The Board, chaired by Herman Manyora, says it will take disciplinary action against Chief Executive Officer Felix Osano and Secretary Gilbert Nyamweya, accusing them of making unapproved decisions that have disrupted services and strained relations with insurers.
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This follows the announcement by eight leading insurance companies of a temporary suspension of their services at Nairobi Hospital, citing a sharp increase in treatment costs.
The firms involved include Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR, CIC, and Pacis Insurance.
In a letter to the hospital’s admitting staff association, Manyora said the most significant decision in question was a 61 per cent increase in patient fees, which the Board claims triggered the insurers’ withdrawal and limited patient access to treatment.
"In recent weeks, we have witnessed a series of unilateral and ill-considered decisions by the CEO, most notably the arbitrary increase of patient charges by up to 61 per cent, without Board consultation and or approval," said Manyora.
Manyora described the current period as “undeniably challenging,” noting that governance issues are already before the courts. He claimed the Board’s efforts to maintain stability have been “consistently undermined” by the CEO and Company Secretary.
“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 preserving as much stability as possible within the hospital’s operations,” Manyora said.
“Unfortunately, these efforts have been consistently undermined by the Chief Executive Officer, Felix Osano, and the Company Secretary, Gilbert Nyamweya, who have continued to conduct themselves in a manner that grossly disregards the authority of the Board.”
The letter also raised concerns over what the Board described as deteriorating hospital infrastructure, citing a non-functional boiler, and questioned an overseas trip by the CEO and other executives to China, which it said had not been sanctioned and was for equipment purchases the hospital could not afford.
Manyora noted that these developments come amid an ongoing court case over governance matters at the hospital. He said the disciplinary action would comply with court orders issued on July 3, 2025, and was aimed at restoring stability.
To mitigate the impact of the insurers’ suspension, the Board said it has opened informal discussions with providers to explore interim solutions.
“Osano and Nyamweya will be held fully accountable for their actions, the reputational harm they have caused, and the instability they have inflicted on this institution,” Manyora said.
“In the coming days, we will write to you again to engage directly on the way forward, with a view to restoring both operational stability and professional dignity to our hospital," he concluded.
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