By Peter John
Four individuals linked to the management of Kenya Hospital Association Limited, the entity that runs The Nairobi Hospital, have been charged before a Nairobi court over alleged conflict of interest, unlawful receipt of benefits and failure to comply with statutory financial reporting requirements.
Those charged are Chris Bichange Munga Nyamaratandi, Samson Mbuthia Kinyanjui, Dr. Job Lukuru Obwaka, and Valarie Akinyi Gaya, who are accused of offences under the Companies Act while serving as directors of Kenya Hospital Association Limited.
According to the charge sheet prepared by the Office of the Director of Public Prosecutions, the first count alleges conflict of interest by a director contrary to Section 146(1) as read with Section 146(12) of the Companies Act.
The prosecution states that Chris Bichange Munga Nyamaratandi, while serving as a director of Kenya Hospital Association Limited between November 10, 2023 and March 15, 2024, allegedly had a direct interest that conflicted with that of the company.
He is accused of receiving Ksh4.8 million from Meritorious Insurance Agency, a firm contracted by the association.
In an alternative charge, Samson Mbuthia Kinyanjui is accused of accepting a benefit from a third party contrary to Section 147(1)(a) as read with Section 147(5) of the Companies Act.
The prosecution alleges that between December 23, 2024 and March 17, 2025, while serving as a director of Kenya Hospital Association Limited, he unlawfully received Ksh3,999,969 in cash from Meritorious Insurance Agency, a company contracted by the association.
Investigators claim the payment was linked to his position as a director, thereby giving rise to a conflict of interest.
The four also face several counts related to failure to lodge financial statements with the Registrar of Companies as required by law.
In one of the counts, Chris Bichange Munga Nyamaratandi is accused of failing to file the association’s financial statements for the 2022 financial year by December 31, 2022.
Another count alleges that he again failed to file the company’s financial statements for the 2023 financial year by December 31, 2023.
In a separate charge, Chris Bichange Munga Nyamaratandi, Samson Mbuthia Kinyanjui, Dr. Job Lukuru Obwaka, and Valarie Akinyi Gaya are jointly accused of failing to lodge the association’s financial statements for the 2024 financial year with the Registrar by December 31, 2024, contrary to Section 683(1) as read with Section 692(1) of the Companies Act.
The prosecution states that the alleged offences occurred while the accused were serving as directors of Kenya Hospital Association Limited in Nairobi.
The complainant in the matter is listed as the Republic through the Office of the Director of Public Prosecutions, with Josias Mugendi Njagi among the witnesses expected to testify.
The case forms part of ongoing legal scrutiny surrounding governance and financial management within Kenya Hospital Association Limited, the organization responsible for managing operations at The Nairobi Hospital.
The matter will proceed before the court for further directions as the prosecution prepares to present its evidence against the accused persons.
