Nairobi Hospital has defended its financial position, arguing at the High Court that it remains financially stable, well-capitalised and capable of supporting its current operations and future growth despite allegations by petitioners that the institution is facing financial collapse.
Busia Senator Okiya Omtatah, Bernard Muchiri Muchere and Naomi Nyakerario Misati claimed in a petition alleged financial and governance failures and challenged the legitimacy of the hospital’s register of members, which determines voting rights at the Annual General Meeting (AGM).
The High Court temporarily halted the AGM scheduled for February 6, 2026, pending determination of the dispute.
But in its response, the hospital said its trustees, as of December 11, 2025, reaffirmed that the institution’s asset base was strong, strategically deployed and well positioned to support both current operations and future growth.
The Board of Management, which is statutorily responsible for preparing the company’s annual financial statements and reports, also found that the hospital had maintained financial stability.
‘In fact, the Hospital reported an increase of its revenue from Sh12.21 billion to Sh12.86 billion despite a repressed macro environment,’ the company secretary Gilbert Nyamweya said in an affidavit.
The petitioners are seeking, among other orders, declarations concerning the hospital’s public-interest status and the completion of investigations by agencies including the Directorate of Criminal Investigations, Ethics and Anti-Corruption Commission, Assets Recovery Agency and Kenya Revenue Authority.
The hospital said it is misleading for the petitioners to claim that the Hospital is in financial ruin.
Mr Omtatah and co-petitioners said the hospital’s own audited 2024 accounts had a Sh2.214 billion deficit, a negative operating fund, and governance chaos serious enough for a probe by a multi-agency team.
‘My Lord, the Petitioners seek conservatory and interim orders to preserve the substratum of the Petition pending its determination on the merits,’ Mr Omtatah said.
The petitioners also cited alleged losses exceeding Sh3 billion, supplier arrears of more than Sh4 billion and questioned the status of approximately Sh9.1 billion in accumulated depreciation funds.
The hospital, however, disputed the broader interpretation placed on these figures and says it is misleading to characterise the institution as being in financial ruin without considering its wider asset base, revenue performance and financial position.
It argues that the revenue growth demonstrates that the institution continues to generate substantial income and maintain its operations, contrary to the petitioners’ portrayal of a hospital on the verge of financial collapse.
Mr Nyamweya said the petitioners have presented an incomplete picture of the hospital’s affairs in an attempt to justify judicial intervention in its internal management.
The official also challenged the authority of the petitioners to file the case arguing that they are not shareholders, members, directors or officials of the company.
He argued that restraining the AGM could expose the hospital and its officials to statutory breaches and personal liability.
The hospital has also rejected claims that its status and public-interest role make it a State entity. It maintains that it is a private company limited by guarantee, registered under the Companies Act, and is neither a State corporation, public body nor government-owned enterprise.
Whereas the petitioners contended that the institution sits on public trust land and performs an essential public function warranting heightened constitutional accountability, the hospital disputed the claim saying the properties, Nairobi/Block27/467 and Nairobi/Block27/470, are held under 50-year leaseholds commencing in 2023.
It argues that the leasehold interests constitute private land and that the titles specifically provide for use of the properties as a hospital and for approved ancillary purposes.