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Economy

Nairobi Hospital owners sue to dissolve its board

The Nairobi Hospital
The Nairobi Hospital. FILE PHOTO | NMG 

Nairobi Hospital's shareholders are seeking court orders to dissolve the board of directors, saying it had failed in its mandate.

Three members of the Kenya Hospital Association (KHA), the body that owns the hospital, have filed a suit seeking the removal of the board, saying it would continue to “unlawfully interfere with the company’s management and affairs to the detriment of the firm and public interest”.

“The plaintiffs are proposing to urgently originate a derivative suit seeking relief on behalf and in the best interest of the company and in public interest,” the case filed under certificate of urgency reads in part.

The association has accused the seven directors, including the board chairman John Simba and his deputy Coutts Otolo — a former Mumias Sugar Company chief executive — of causing dysfunction of various aspects of operations of the hospital.

The case, which is fixed for mention next month, also seeks to bar the board from reconstituting the management until the annual general meeting on June 17, 2019.

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But Mr Otolo said the board was beyond reproach. “The hospital has maintained an average of 70 percent bed occupancy rates in April 2019 due to its exemplary patients’ care. The plaintiffs allegations that the board neglected its duties leading to recession of the hospital is unfounded and plainly false,” reads his response in part.

The wrangles at the facility were triggered by the suspension of now sacked CEO Gordon Odundo in December.

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