State House has clarified the role played by President William Ruto in attempts to resolve the governance and financial disputes that have affected Nairobi Hospital in recent months.
The explanation came on Monday as the hospital’s chairman, Dr Job Obwaka, appeared in court alongside three other directors over alleged conflicts of interest and failure to comply with company reporting requirements.
In a statement, State House spokesperson Hussein Mohamed said the President received formal petitions from stakeholders raising concerns about management disputes and financial questions surrounding the hospital.
According to Mohamed, the issues raised included disagreements over association membership, disputed board elections, leadership wrangles and a growing number of court cases related to the hospital’s management. Stakeholders warned that the continued standoff could disrupt hospital operations and affect patient care if left unresolved.
Mohamed said Ruto became involved both in his capacity as Head of State and as Patron of the Kenya Hospital Association (Nairobi Hospital), a role he accepted in 2023.
He added that mediation efforts have been underway for several months. Chief of Staff and Head of the Public Service Felix Koskei is reported to have held a series of consultations with board members, doctors and other stakeholders in an effort to find a resolution. According to the spokesperson, at least 14 meetings were convened during the process.
“These engagements resulted in the reconstitution of the Board of Management through a process agreed upon by the concerned parties, with stakeholders providing nominees in order to accommodate the various interests represented within the Association,” Mohamed said.
Participants in the discussions also agreed on a five-point reform plan aimed at stabilising the institution. The measures included verification of the association’s membership register, steps to resolve ongoing litigation affecting the hospital, governance reforms and the commissioning of an independent forensic audit to review financial concerns. Preparations for a fresh annual general meeting were also included in the reform process.
“Subsequently, and following the petitions, the Attorney General invoked Section 800 of the Companies Act to appoint inspectors to investigate the affairs of the Kenya Hospital Association,” Mohamed said.
A multi-agency team drawn from several government institutions — including the Business Registration Service, the Asset Recovery Agency, the Kenya Revenue Authority, the Directorate of Criminal Investigations, the National Intelligence Service and the Financial Reporting Centre — conducted the investigation.
The team submitted its report to the Attorney General on March 6, after which relevant authorities were instructed to take action where necessary.
“The President has noted the ongoing processes being undertaken by the Attorney General and directed the timely conclusion and implementation of the pending report, to safeguard the interests of patients, staff, medical professionals and employees and the long-term future of the hospital,” said Mohamed.
State House added that given Nairobi Hospital’s central role in the country’s healthcare system, the operational challenges facing the facility must be resolved in a way that preserves its stability and protects the interests of patients, staff and medical professionals.
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