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Nairobi Hospital owners’ bid to eject board halted

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The management of Nairobi Hospital has obtained an injunction restraining the owners of the health facility from distributing a notice demanding their removal from office.

The order by the Milimani Commercial Magistrate’s Court provides relief to the board, which has come under heavy criticism from a section of the Kenya Hospitals Association (KHA), the membership body that owns the Nairobi hospital.

“The defendants/respondents, their agents, servants, employees and/or any person acting on their behalf are hereby prohibited from circulating, publishing, aggregating or further publishing on any medium, including social media platforms such as WhatsApp, Facebook, Instagram, Twitter or any other social media pages and/or relying on them prior to any forums or general meetings, whether of members of the Kenya Hospitals Association at an Extraordinary General Meeting, Special General Meeting or Annual General Meeting whether conducted virtually or physically or through public platforms or defamatory statements sent through any communication channels including the letter dated 2nd August 2024 on behalf of the defendants/respondents or any person acting on their behalf or instructions,” the court order issued on August 15 read.

Dr Chris Petchag, chairman of the Nairobi Hospital Board of Directors, has filed a defamation lawsuit against the Kenya Hospitals Authority over allegations made in a notice calling for the removal of board members. The notice, filed on August 2, 2024, has sparked controversy within the organisation.

The lawsuit named 363 Taliban members as defendants in the case.

“Plaintiff is granted leave to serve the motion and pleadings by alternative service in a newspaper with nationwide coverage and distribution and by email in light of the large number of defendants for the inter partes hearing next month.

“Please note that any violation of a court order issued hereunder will result in criminal consequences for you and any other person who violates and fails to comply with the order,” the order states.

KHA has called an extraordinary general meeting to remove 13 directors from the board, citing a loss of confidence in their leadership.

In a petition to KHA’s board of directors, members of the petition group named directors, including chairman Chris Petchag and vice chairman Philemon Mwaisaka, alleging they failed in their legal and fiduciary duties to the company and its interests.

“The aforementioned failures of the Board include, but are not limited to, passing collective resolutions to accept and issue tenders in contravention of the hospital’s procurement manual, which will be financed by external borrowing to the tune of Sh2 billion, using the company’s assets as collateral without informing or obtaining the approval of the members, and without considering alternative financing, thereby putting the company’s assets and existence at risk in the event that the company is unable to meet the proposed astronomical load,” reads the petition drafted by the Housing Authority’s Demands Committee.

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