Nairobi, September 9, 2024 – The Nairobi Hospital, once revered as the premier healthcare institution in East Africa, is facing a severe crisis due to what has been described as catastrophic failures in corporate governance.
According to a statement from the Kenya Hospital Association (KHA) and the Admitting Staff Association, the hospital’s decline is attributed to rampant mismanagement, greed, nepotism, tribalism and corruption under the current Board of Management, including the Chairman, Directors, and Chief Executive Officer (CEO).
Miller Bwire, a Proposal Director and KHA member, opened the press conference by quoting Dr. Joseph K. Thomas, a global executive and corporate leader, who asserted that “extraordinary times call for extraordinary measures.” This sentiment underscores the gravity of the situation at Nairobi Hospital, which has rapidly lost its status as a leading medical facility in the region. The institution, known for its advanced diagnostic, treatment, and referral services, has seen its core values of dedication, empathy, quality, integrity, and accountability compromised.
The statement outlined several grave issues facing the hospital. The Board of Directors and the CEO are accused of failing in their fiduciary duties, including neglecting their responsibilities of care, loyalty, and financial prudence.
According to Bwire, the allegations suggest that these leaders have engaged in conflicts of interest, conducted business through fictitious companies and proxies, and participated in financial misconduct, including inflating supplier invoices for kickbacks.
“These governance failures have reportedly led to the hospital’s near-total collapse, necessitating urgent legal action by concerned members and shareholders. About 400 members have invoked Article 18 of the hospital’s Articles of Association, along with Sections 277 and 278 of the Companies Act, 2015, to call for an Extraordinary General Meeting (EGM)” said Bwire
The purpose of the meeting is to recall the current Board of Management and the Company Secretary, and elect an interim Board and CEO to restore the hospital’s functionality and reputation. This requisition was submitted to the Company Secretary on August 2, 2024.
However, the current management has allegedly employed various tactics to obstruct this process. Reports indicate that the Board, CEO, and Company Secretary have attempted to deter members from supporting the requisition through misleading communications and threats. These actions include involvement from the Directorate of Criminal Investigations, alleged threats of arrest based on false claims, and complaints to the Data Protection Commissioner over alleged breaches of data privacy.
In addition to these tactics, the management is accused of using legal claims of defamation to undermine the requisition. The press statement calls on the judiciary and legal professionals to resist being used to subvert the democratic process and prevent necessary reforms.
In light of these issues, the KHA and the Admitting Staff Association have announced that if the current Board and CEO do not resign by September 16, 2024, doctors will strike from midnight of that day. The strike will involve ceasing new admissions while continuing to care for existing patients.
Bwire call all members and stakeholders to support the EGM scheduled for September 18, 2024, at 2:30 PM at the Radisson Blu Hotel, Upper Hill. The goal is to replace the current Board and CEO with a new leadership team capable of restoring the hospital’s former prestige and ensuring its long-term viability.
This urgent appeal highlights the severe governance issues at Nairobi Hospital and underscores the need for immediate and decisive action to prevent further decline and protect the institution’s legacy.