Omtatah seeks to stop hospital AGM over missing Sh9b

Busia Senator Okiya Omtatah has filed a fresh petition at the High Court seeking to halt The Nairobi Hospital’s upcoming Annual General Meeting (AGM) scheduled for Thursday, citing alleged financial mismanagement and governance chaos at the iconic medical institution.

In an urgent application lodged on Wednesday at the Constitution and Human Rights Division in Milimani High Court, Omtatah, alongside activists Bernard Muchiri Muchere and Naomi Nyakerario Misati, is demanding immediate court intervention to prevent what they describe as an “irreversible governance catastrophe.”

The petition names the hospital’s leadership, including board chairperson Prof Herman Manyora, CEO Felix Osano, and other officials, as respondents, accusing them of presiding over “systemic mismanagement” that has pushed the institution to the brink of operational collapse.

The trio argues that allowing the AGM to proceed on February 6, 2026, would be a travesty of justice given the contested legitimacy of the membership register, which determines voting rights at the meeting.

“Once the AGM is held, irreversible governance actions will be undertaken, including elections, ratifications, and resolutions, which will fundamentally alter the governance structure of the Kenya Hospital Association and render the substantive petition nugatory,” the petitioners warn in their certificate of urgency.

At the center of the petition are serious allegations of financial meltdown at the 70-year-old institution, including the mysterious disappearance of Sh9.1 billion in accumulated depreciation funds. “Only Sh572 million is traceable in cash equivalents,” the court papers state, raising serious questions about the whereabouts of billions meant for asset replacement and institutional sustainability.

The petition paints a grim picture of an institution in financial free fall, with audited losses exceeding Sh3 billion and a Sh2 billion deficit recorded in 2024 alone, despite generating revenues of Sh12.86 billion that year. Supplier arrears have reportedly ballooned past Sh4 billion, threatening the hospital’s operational capacity and its ability to deliver critical healthcare services.

“We are concerned that The Nairobi Hospital is facing an imminent institutional collapse driven by severe governance failures, financial mismanagement, and leadership conflicts,” Senator Omtatah states in the supporting affidavit.

The petitioners also flag unexplained spikes in legal and professional expenses, which jumped by Sh290 million to reach Sh680 million in a single year, alongside irregularities in debt collection. Beyond the financial crisis, the court papers reveal alleged governance paralysis characterised by factional board infighting that has sidelined critical oversight committees, including the Medical Advisory Committee, potentially compromising patient safety and clinical standards.

Irregularly enrolled

In what the petitioners describe as a scheme to manipulate institutional control, they allege that 333 individuals were irregularly enrolled into the KHA membership register through a single bulk payment of Sh5 million by one person identified as Anne Bosibori Omari.

“This was purportedly to manipulate control of the institution and bypass proper vetting processes,” the petition alleges. The activists argue such financial inducements violate constitutional principles and render any decisions taken at the contested AGM fundamentally tainted and illegitimate.

Senator Omtatah and his co-petitioners contend that The Nairobi Hospital is not an ordinary private entity but rather a public trust institution sitting on 21.8 acres of prime public land granted by the colonial government in 1952 specifically for healthcare delivery.

“The hospital occupies public land under strict conditions, including nominal annual rent and a ‘public purpose’ clause that permits government reclamation without full compensation in cases of misuse,” the petition states.

The case also accuses multiple state agencies of failing to act despite credible evidence of wrongdoing and existing court orders.

The 25 respondents named include the Kenya Hospital Association, its Board of Management, individual directors, and government entities, including the DCI, Ethics and Anti-Corruption Commission, National Land Commission, Attorney General, Assets Recovery Authority, Director of Public Prosecutions, and Kenya Revenue Authority. The petitioners are seeking sweeping court orders, including an immediate injunction stopping Thursday’s AGM, expunging the 333 allegedly irregular members from the register, freezing any sale or transfer of hospital land, and compelling state agencies to conduct comprehensive forensic audits covering the past decade.

The activists also want the court to declare The Nairobi Hospital a public trust institution subject to heightened constitutional scrutiny and accountability standards.

“We seek orders compelling state agencies to urgently investigate, conduct forensic audits, including a 10-year review, preserve assets, and report back within specified timelines such as 45 or 60 days,” the petition states.

The activists also want the court to declare The Nairobi Hospital a public trust institution subject to heightened constitutional scrutiny and accountability standards. “We warn that unchecked failure would erode public confidence, compromise healthcare access, and undermine Kenya’s standing as a medical leader in the region,” Senator Omtatah cautions.

The case is pending directions and a hearing.