High Court upholds Nairobi Hospital governance, lifts borrowing restrictions

NAIROBI, Kenya, Mar 24 – The High Court in Nairobi has upheld the governance of The Kenya Hospital Association (KHA), the entity that owns and operates The Nairobi Hospital, putting on hold a petition that sought to challenge the validity of its board elections held on December 4, 2024.

Justice Peter Mulwa ruled in favor of the association, affirming the integrity of its governance processes and rejecting an application that sought to overturn the election results.

In a statement, KHA Board Chairman Barclay Onyambu welcomed the court’s decision, emphasizing that it reinforces the association’s commitment to transparency, accountability, and sound governance.

“This ruling ensures the continuity of essential healthcare services, supports long-term infrastructure projects, and secures the financial stability necessary to maintain quality medical care,” Onyambu stated.

With the lifting of previous court-imposed restrictions, the board can now resume full operations, including financial planning and infrastructure development, which had been stalled by legal challenges.

The ruling also overturned interim orders that had prohibited KHA from borrowing for capital expenditure. These restrictions, imposed on February 28, 2025, had halted key hospital operations, including equipment purchases, facility upgrades, and financial planning.

Justice Mulwa further ruled that each party would bear its own legal costs, effectively closing the case.

The petition had been filed by Dr. Samuel Mithamo Muchiri, a KHA member, who challenged the legitimacy of the board elections and raised concerns over alleged governance irregularities. However, the court found no sufficient grounds to uphold his claims.

This decision now paves the way for The Nairobi Hospital to implement its strategic initiatives, ensuring continued service delivery without legal uncertainties.

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