High Court lifts orders restricting Nairobi Hospital’s capital expenditure

The High Court has lifted interim orders that barred the Board of Management of Nairobi Hospital from undertaking any form of capital expenditure. 

In his ruling, Justice Peter Mulwa on Monday noted that the issues raised in the petition closely resemble those in another ongoing matter, leading to the discharge of the interim orders. 

"I also note that the issue of the Ksh.4.2 billion borrowing, now raised by the Plaintiff herein, was a matter in issue in HCCOMM E233 of 2024, where the court (Dr Mugambi, J.) held that this issue would be best raised and addressed in HCCOMM E544 of 2024," stated Justice Mulwa. 

The judge further observed that the Plaintiff's concerns stem from the hospital’s Annual General Meeting (AGM) held on December 4, 2024. The Plaintiff is challenging the manner in which the AGM was conducted, the resolutions passed, and their implications. 

"In my view, these are issues that will best be determined by the court in HCCOMM E544 of 2024, as the outcome and report of the AGM are before that court," he ruled. 

Additionally, the Plaintiff sought the removal of the hospital's directors—another matter central to the requisition that led to HCCOMM E544 of 2024. 

"The concept of sub judice is that where an issue is pending in a court of law for adjudication between the same parties, any other court is barred from trying that issue so long as the first suit is ongoing. It would be untidy for the court to consider the outcome of the AGM in both this suit and the earlier suit, as there is a great risk of conflicting orders from coordinated courts," Justice Mulwa emphasised. 

Following the ruling, the hospital board has welcomed the decision, reaffirming its commitment to transparency, good governance, and quality healthcare.

With previous court restrictions lifted, Nairobi Hospital can now focus on service delivery, infrastructure development, and financial stability. 

"We remain committed to world-class healthcare and engaging our members per the law," said Dr Barcley Onyambu, Chairman of the Kenya Hospital Association (KHA) Board.