Faces of Impunity at the Nairobi Hospital

During the colonial period in Kenya, present-day Nairobi Hospital was set aside to treat Europeans. Kenyatta National Hospital was the preserve of the natives, also known as African.


After independence, the ruling class, led by the Kenyatta’s, the Odinga’s, the Njonjo’s, and Moi’s became the new owners of the Hospital.


But they required expertise to run the hospital, and so an exclusive members club, owned by top doctors was formed. The membership fee for these privileged few was capped at Sh.3000 and Sh.10,000.


The benefit was simple. These member doctors classified themselves as consultants..and for that they were allowed to admit patients, charge them exorbitant fees, and make their money.


For the ruling class, an arrangement of a judge discount for use of the hospital facilities was fixed. With this, an economic deal was signed, to benefit the rich and famous and ensure they received top-notch medical care as ordinary Kenyans crowded like sardines in Kenyatta Hospital.


For a long time, this arrangement worked. No greed. No complaints. No problem. Until Dr. Cleopha Mailu was appointed the first African CEO of the institution. Mailu, a cancer specialist presided over the expansion of Nairobi Hospital to levels.

Dr. Cleopha Mailu


During his tenure, renovations and civil works become the second name of the hospital. New cancer units, brand new doctors Plaza, and other amenities. Probably the best in Africa.

Mailu did not end it there. He introduced his friends such as Stephen Kalonzo Musyoka to the membership of Nairobi Hospital…a move that gave the institution a new impetus. Other non-doctor members at the hospital include Nyiva Mwendwa, Chris Obura, Jeremiah Kiereini, Llyod Masika, Sam Ncheere and Isaac Awuondo.

During the reign of Dr. Mailu, staff pilferage and theft was the order of the day. Of course no one was charged with the offence of stealing. Primarily because the hospital is a non profit-making organization…and nobody really cares about the disappearance of the cash.


But if Mailu had looked the other way as cash was siphoned off the books of Nairobi Hospital, it is the man who replaced him who took the thieving mantra to new levels.

Dr. Gordon Odundo, headhunted from Gertrudes Children Hospital hampered his own lofty ideas.
Not only did he look the other way, but he introduced an opaque billing system that had no indication of the items purchased.

Dr. Gordon Odundo


According to Odundo billing system that appears to originate from the abyss of graft, a bill only item was either pharmacy, consultation, ex-ray and never itemized. Meaning one was paying for goods and services not fully consumed.

As a result, only Nairobi Hospital knew the bill details, leaving customers to figure out their payments.
It is for this reason that Jubilee and Nairobi hospital are involved in a huge fight with Jubilee Insurance over a paltry Sh.80million bill.


Which begs the question:
Why are two premier institutions, Jubilee Insurance and Nairobi Hospital unable to reconcile their accounts payable?
At this era of technology, it should take these firms…one owned by the amorphous Kenya Hospital Association and the other by the Agakhan less than an hour to decide who owes who what, and settle the math.


So what is the story?
Jubilee claims a paltry bill of Sh.80million is the reason for the standoff. According to a position statement issued by the insurer, this is against a business turnover of Sh.1billion annually between the two institutions.


And therein is the problem. The disputed bill represents 0.08per cent of risk exposure, calculated based on the official figures issued by Jubilee. At best, this can be written off and the bigger picture created.
By failing to agree on the actual bill, the insurer risks losing Sh.1billion worth of sure business. Then there is the conflict of interest jinx.


Jubilee Insurance owns the Agakhan Hospital, one of the biggest competitors of Nairobi Hospital. The insurer pays a leaner bill at Agakhan, primary because of duo ownership.

Unlike Nairobi Hospital, Agakhan makes profit and cant understand why Bill’s are not interrogated at Nairobi Hospital, they want verified Bill’s or nothing.