Nairobi Hospital to pay former chief executive Sh79m for unfair sacking
Crime and Justice
By
Kamau Muthoni
| Nov 09, 2025
The Kenya Hospital Association, the owner of the Nairobi Hospital, will now pay its former Chief Executive Officer Gordon Odundo, more than Sh79 million after being faulted by the court for illegally sacking him.
Employment and Labour Relations Court Judge David Marete in his judgment, said that the hospital’s management did not give Odundo a fair chance to rebut the allegations they raised against him.
He observed that the management’s behaviour was clear that it was hell-bent on having Odundo out of the throne.
Justice Marete said that the environment around was too toxic, which supported Odundo’s argument that his die had been pre-cast.
“It is this court’s observation that the sequence of event leading to the claimant’s termination from employment fell short of requirements of substantive and procedural fairness as esponsed by section 41, 43 and 45 of the Employment, Act, 2007. A case of unfair and unlawful termination of employment therefore ensues in the circumstances and I hold as such,” said Justice Marete.
READ MORE
MPs pledge site visist as KTDA gives progress on hydro power project
Why Gen Zs are not sending money to parents
The true impact of Iran-US war on the Kenyan economy
KPA steps up plans for expansion of Kisumu Port
Infrastructure, trust key to cities success as Nairobi, Rome stagnate
HF Group posts 40pc jump in full-year net profit to Sh1.4 billion
How personalised developments are reshaping local property market
Government tightens oversight on Saccos to safeguard members' deposits
The Judge awarded Odundo Sh14 million in place of three months’ notice. He also granted him Sh56.2 million which is equivalent to 12 months’ compensation for unlawful sacking.
Justice Marete further ordered the hospital to pay Sh422,100 for the outstanding leave days and Sh2.1 million, which he said was illegally deducted from him.
In his case, Odundo told the court that he was appointed as the CEO in April 2016 after a rigorous interview exercise.
He stated that he came on board on a promise that he would remain at helm of the private hospital until his retirement. According to him, he resigned as the Gertrude’s Childrens Hospital’s CEO after 13 years of employment, knowing that his employer would keep its word.
He said that he was on May 14, 2016 handed a four-year contract, which was to start on October 4, the same year.
The court heard that two years into his employment, seven board members conspired to have him out. He pointed an accusing finger to the board’s chair. He stated that on December 14, 2018, while he was in a meeting, security officers who were accompanied by lawyers representing the hospital stormed in to serve him with an unknown document and subsequently forcefully removed him from office.
Odundo told the court that despite asking for information to enable him reply to the queries, he got meandering and vague responses from the hospital’s lawyers.
According to him, the hospital’s management, on March 27, 2019, then issued him a show cause letter, requiring him to explain why he ought not to be fired within seven days. Nevertheless, he said, he was no allowed to access his office, which had crucial information that would have enabled him to comprehensively respond to the issues raised.
He was sacked on April 9, 2019 for alleged gross misconduct and his appeal was rejected.
In response, the hospital claimed that it noted some issues of concern in 2018 under his docket. It explained that it sought for an independent investigator who then asked for certain information from him but it was not availed.
It claimed that Odundo made it difficult for the auditors to do their work, which prompted it to send him on leave for 90 days.