The High Court in Nairobi is set to hear a petition seeking the liquidation of the Kenya Hospital Association (KHA), the entity that operates The Nairobi Hospital, in a case that could have sweeping implications for one of Kenya’s most prominent private medical institutions.
The petition, filed by Optico K. Limited through C.M. Advocates LLP, will be heard in a case management conference before the Commercial and Tax Division of the High Court at Milimani on 13 August 2025. Any party wishing to support or oppose the petition may appear in person or be represented by counsel. While the filing does not detail the grounds, liquidation petitions typically arise when creditors allege a company is unable to meet its obligations.
The Nairobi Hospital has long been regarded as a premier referral centre in East Africa, but recent months have been marked by deep internal turmoil.
Separately, the High Court is hearing a contempt application against ousted KHA chairperson Dr Barcley Onyambu, chief executive officer Felix Osano, and company secretary Gilbert Nyamweya for allegedly defying a court order halting a board retreat in Naivasha. Justice Nixon Sifuna ruled that the retreat, held on 3 and 4 July, directly contravened his order, rendering any resolutions from it illegal. The order followed a boardroom coup in which Prof Herman Manyora replaced Dr Onyambu as chair.
The legal wrangles come amid a governance and operational crisis laid bare in a strongly-worded letter dated 9 August from Chairman Manyora to stakeholders. In it, he accuses CEO Osano of unilaterally increasing patient charges by up to 61% without board approval — a move he says triggered service suspensions by more than eight major insurers, severely restricting patient access and tarnishing the hospital’s reputation.
Manyora’s letter also cites infrastructure failures, including a non-functional boiler that has left patients taking “French baths,” as well as the termination or lapse of senior staff contracts without due process. He alleges top executives embarked on an unauthorized trip to China for equipment purchases the hospital cannot afford and the board had not sanctioned.
The chairman accuses both Osano and Nyamweya of “grossly disregarding the authority of the Board” and undermining stability amid ongoing legal proceedings. He announced “decisive disciplinary action” against the two in compliance with court orders, pledging they would be held accountable for the “reputational harm” and “instability” caused.
The board is in informal talks with insurers to restore suspended services, seen as crucial to maintaining patient access and repairing strained relationships.
The insolvency petition, contempt proceedings, and governance crisis now threaten to converge into the most serious challenge in the hospital’s modern history.
