The Standard Group Plc is a multi-media organization with investments in media
platforms spanning newspaper print
operations, television, radio broadcasting, digital and online services. The
Standard Group is recognized as a
leading multi-media house in Kenya with a key influence in matters of national
and international interest.
Allegations of state capture have deepened the crisis at The Nairobi Hospital, with board members and doctors warning that political interference, systematic disregard of court orders and financial mismanagement are threatening patient care, staff livelihoods and the survival of one of Kenya’s leading medical institutions.
Speaking on behalf of the board and doctors, one of the board members, Job Obwaka, said the hospital is facing a constitutional and governance crisis defined by repeated defiance of binding rulings issued by the High Court.
He said that despite multiple conservatory orders barring board meetings, governance changes and implementation of disputed resolutions, senior executives continue to exercise authority as if the law does not apply to them.
“This matter is no longer about personalities or internal disagreements. It goes to the heart of whether court orders in Kenya are respected and obeyed, or whether they can simply be ignored by those who feel protected,” Obwaka said.
“Following a special board of management meeting convened on July 4, 2025 in consideration of the subsisting High Court orders, both the company secretary Gilbert Nyamweya and the Chief Executive Officer Felix Osano were lawfully placed on mandatory leave but despite this lawful decision both officers have refused to proceed on leave and continue to report to exercise authority,” Obwaka stated.
He said the continued defiance raises unavoidable questions about political shielding.
Obwaka pointed to the co-option of individuals allegedly linked to State House into the hospital’s board at a time when governance alterations were expressly restrained by the court.
According to the board members, the appointments were rushed through after an annual general meeting was stopped by court, bypassing vetting, member approval and established procedures.
Some of the individuals involved, they added, are alleged to have direct or indirect commercial dealings with the hospital, creating serious conflicts of interest.
“This is how capture manifests itself. Court orders are ignored, oversight is paralysed, and decisions begin to serve connected interests rather than patients and staff,” Obwaka said.
The governance turmoil has coincided with a steep financial decline.
Ngugi Wachira, another board member in charge of audit and risk governance, said the hospital recorded losses of more than Sh3 billion in 2024 and now owes suppliers in excess of Sh4 billion.
“As a result, some suppliers have suspended delivery of essential drugs, medical equipment and consumables, leaving doctors struggling to provide timely and safe care,” he said.
Dr Wachira warned that delayed surgeries, drug shortages and compromised standards of care are already being felt on the ground.
He further linked the crisis to recent insurance upheaval at the hospital, describing it as a major warning sign.
“Several insurance companies temporarily withdrew services after uncovering widespread billing irregularities, including patients being charged for services and consumables they never received. A task force led by doctors later negotiated the insurers’ return, but only after it emerged that hospital charges had been increased by up to 61 per cent without clear justification,” Wachira stated.
join