Nairobi Hospital Faces Crisis: Calls for Management Overhaul Intensify
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The Nairobi Hospital, once regarded as East Africa’s premier healthcare institution, is now on the brink of collapse due to alleged mismanagement and corruption, according to a scathing statement by Miller Bwire of the Kenya Hospital Association (KHA).
Bwire, quoting Dr. Joseph K. Thomas, emphasized that “extraordinary times call for extraordinary measures” as he detailed the hospital’s dire situation. The statement accuses the current Board of Management, including the Chairman, Directors, and CEO, of severe lapses in corporate governance, citing issues of greed, resource pilferage, and conflict of interest.
“The Nairobi Hospital has lost its former glory and competitiveness,” Bwire declared. “The ideals of dedication, empathy, and quality that once defined this institution have been compromised by the current management.”
The KHA has raised serious concerns about breaches in fiduciary duties, highlighting a lack of financial discipline and transparency. Bwire claims that the hospital’s Board and CEO have engaged in unethical practices, such as doing business with the hospital through fictitious companies and close associates, thereby undermining the institution’s operations and reputation.
In response to these allegations, approximately 400 KHA members and the Admitting Staff Association (doctors) have requisitioned an Extraordinary General Meeting (EGM) under Article 18 of the hospital’s Articles of Association, as per Sections 277 and 278 of the Companies Act, 2015. This move aims to recall the entire Board of Management and the Company Secretary, and elect a new interim board to salvage the hospital.
The EGM is scheduled for September 18, 2024, at the Radisson Blu Hotel in Upper Hill. However, Bwire accused the current management of using intimidation tactics to thwart the meeting. These tactics include discouraging members from signing the requisition, threats of arrest from the Directorate of Criminal Investigations, and attempts to manipulate the membership register.
“The desperation of the Board and CEO to block the EGM is evident,” Bwire said. “They have even resorted to legal action, claiming defamation in a bid to obstruct the members’ right to hold the meeting.”
The statement further reveals that the hospital is struggling to meet its financial obligations, including payments to suppliers, salaries, and other operational costs. Bwire warned that if the current management does not resign by September 16, 2024, doctors will down tools from midnight, providing only emergency care and suspending new admissions.
“The hospital is in an Intensive Care Unit,” Bwire emphasized, urging all stakeholders to support the EGM and participate in restoring the hospital to its former status.
The crisis at the Nairobi Hospital highlights a critical juncture for one of East Africa’s leading medical facilities. As the situation unfolds, the healthcare community and the public will be watching closely to see how the governance issues are addressed and whether the proposed changes can restore the hospital’s reputation and operational stability.
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