NAIROBI, Kenya – The High Court has lifted interim orders that had barred the Board of Management of Nairobi Hospital from undertaking any form of capital expenditure.
The ruling, delivered by Justice Peter Mulwa on Monday, clears the way for the hospital to proceed with its planned infrastructure development and financial initiatives.
Justice Mulwa’s decision stemmed from the close resemblance of issues raised in the current petition to those already under litigation in another matter.
“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,” Justice Mulwa noted.
The Plaintiff had sought to challenge the outcomes of the hospital’s Annual General Meeting (AGM) held on December 4, 2024.
Among the contested matters were the manner in which the AGM was conducted, the resolutions passed, and their broader implications, including a proposal to remove certain directors of the hospital.
However, Justice Mulwa ruled that these concerns should be addressed in the context of the ongoing case, 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,” Justice Mulwa stated. “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.”
The lifting of the restrictions has been welcomed by the Nairobi Hospital Board, which reaffirmed its commitment to transparency, good governance, and its mission of providing quality healthcare.
“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. “This ruling allows us to refocus on service delivery, infrastructure development, and financial stability.”
The decision is a significant step forward for the hospital, which can now proceed with its planned capital investments, including a controversial Ksh.4.2 billion borrowing that had become a point of contention.
The hospital board’s leadership expressed optimism about moving past the legal hurdles to concentrate on enhancing its services and infrastructure.
