Written by Were Kelly
The Nairobi Hospital is facing its most severe operational crisis in recent memory, with the Board of Management announcing decisive action against CEO Felix Osano and Company Secretary Gilbert Nyamweya following a series of controversial decisions that have crippled the institution.
In a strongly-worded letter dated August 9, 2025, Board Chairman Herman Manyora of the Kenya Hospital Association outlined the extent of the crisis, which has left doctors and staff struggling to maintain operations amid what he described as “unprecedented disruptions.”
The most damaging blow came when CEO Osano unilaterally increased patient charges by up to 61% without board consultation or approval. This “reckless move” has triggered the suspension of services by more than eight major insurers, severely restricting patient access and damaging the hospital’s reputation.
The crisis has been compounded by a series of infrastructure failures and questionable management decisions. Reports indicate that the hospital’s infrastructure is deteriorating, including a non-functional boiler that is forcing patients to take “French baths” – a stark illustration of how basic services have been compromised under current management.
Adding to the institutional turmoil, senior staff contracts have been terminated or allowed to lapse without proper process. In what appears to be a final straw for the board, several top executives embarked on an unauthorized trip to China, ostensibly for equipment purchases that the hospital cannot afford and which the board had not sanctioned.
The board’s letter reveals that there is currently an active legal matter before the courts concerning governance issues at the hospital. Despite ongoing legal proceedings, the board has maintained its commitment to preserving stability within the hospital’s operations, efforts that have been “consistently undermined” by the CEO and Company Secretary.
Chairman Manyora emphasized that both Osano and Nyamweya have “continued to conduct themselves in a manner that grossly disregards the authority of the Board,” leading to the current state of affairs.
In response to the crisis, the board announced it is taking “decisive disciplinary action” against both the CEO and Company Secretary, in compliance with court orders dated July 3, 2025. The letter states that both executives “will be held fully accountable for their actions, the reputational harm they have caused, and the instability they have inflicted on this institution.”
The board is already in informal consultations with several insurers to explore possible interim arrangements that may help ease the disruption caused by the service suspensions. These discussions are crucial as the hospital works to restore relationships with insurance providers and ensure continued patient access to services.
Chairman Manyora assured the hospital’s admitting staff that the board values their dedication to patient care during this turbulent period and promised further communication in the coming days to outline the path forward for restoring both operational stability and professional dignity to the institution.
The crisis at Nairobi Hospital, one of Kenya’s premier private healthcare facilities, highlights broader governance challenges facing healthcare institutions and raises questions about oversight mechanisms in the sector.
