Court of Appeal freezes case against Nairobi Hospital executives

The Court of Appeal has suspended the hearing of the contempt application against the  Nairobi Hospital Chief Executive Officer, Felix Osano, the hospital’s secretary, Gilbert Nyamweya and the embattled chairman, Dr Barcley Onyambu.

Justices Patrick Kiage, Jamila Mohammed and Weldon Korir unanimously agreed that the case before High Court Judge Prof Nixon Sifuna should not be heard until the application filed by the Kenya Hospital Association’s board of management is heard and determined.

“We now direct that a temporary order be and is hereby issued in terms of prayer three of the motion staying the orders issued by the High Court (Sifuna J) and any other further proceedings therein pending delivery of the ruling,” the bench headed by Justice Kiage ruled.

In the case, the hospital’s lawyer, Dr Duncan Okubasu, argued that the orders issued by Justice Sifuna had crippled the hospital’s operations.

He said that the case before the High Court terminated when a notice was withdrawal was filed. According to him, there was nothing wrong with the hospital’s board appointing his law firm to appear before the court.

“The learned judge erred in law and in fact by finding that the High Court proceedings could be sustained against the defendants in spite of the Notice of Withdrawal of suit. The continued conduct of the proceedings in the High Court when the very basis of the authority of the suit is in question is highly prejudicial to the applicants,” argued Okubasu.

He asserted that the orders barring his clients from calling a meeting or going to any retreats amounted to stalling the hospital.

Okubasu was of the view that the board is critical to the day-to-day running of an institution.

While supporting the case, the hospital’s board vice chair, Samson Mbuthia, stated that on July 3, 2025, they were attending a board retreat in Naivasha, when they received court orders indicating that the board had filed a suit against Osano, Nyamweya and Onyambu.

He stated that Justice Sifuna declined to strike out the case and instead directed that the trio should explain why they ought not to be punished for allegedly holding a meeting contrary to the court orders.

“The said judge then proceeded to take further proceedings, including to seek to punish the officers of the company for contempt on the basis that they instructed an advocate to withdraw the suit,” he said.