Nairobi Hospital Moves To Punish CEO After 8 Major Insurers Suspend Services
Board Chairman Herman Manyora outlined a series of controversial decisions by the CEO.
Marvin Chege 
The Nairobi Hospital is embroiled in a deepening governance crisis, with its Board of Management taking decisive action against Chief Executive Officer (CEO) Felix Osano and Company Secretary Gilbert Nyamweya for alleged gross misconduct and disregard for board authority.
In a strongly worded letter dated August 9, 2025 and addressed to the hospital’s Admitting Staff Association, Board Chairman Herman Manyora outlined a series of controversial decisions by the CEO.
The decisions included an unauthorized 61 per cent increase in patient charges—implemented without board approval—which has led to eight major insurers suspending services with the hospital. According to Manyora, the move has severely restricted patient access and tarnished the institution’s reputation.
"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 letter obtained by Viral Tea reads in part.
A file photo of political analyst Herman Manyora. /CITIZEN DIGITAL
Insurers had earlier warned that the suspension would take effect for most clients on August 11 or 12, meaning policyholders with these companies would no longer access services at the hospital.
In an August 8 statement, Old Mutual’s General Manager for Health Business, Ken Omami, said their suspension would begin on August 12 to allow time for negotiations with the hospital.
“This suspension is intended to allow our teams to negotiate a recent increase in prices, which is likely to affect the sustainability of your policy and result in a significant premium increase,” the statement read.
The letter further revealed shocking lapses in hospital management, including non-functional boiler, forcing patients to take "French baths" (sponge baths) due to lack of hot water.
Also cited were an abrupt termination of senior staff contracts without due process as well as an unauthorized trip to China by the CEO and top executives to procure medical equipment—despite the hospital’s financial constraints and lack of board approval.
The Board has since resolved to take disciplinary action against Osano and Nyamweya, citing violations of a court order issued on July 3, 2025 regarding hospital governance.
"The Board assures you that, vide a resolution of the Board and in compliance with the court orders of 3rd July, 2025, it is taking decisive disciplinary action against the CEO and the Company Secretary. They will be held fully accountable for their actions, the reputational harm they have caused, and the instability they have inflicted on this institution," added the statement.
Manyora assured staff that the Board is working to stabilize operations, including emergency talks with insurers to mitigate service disruptions.
The crisis has placed immense strain on medical staff, who continue to deliver care amid deteriorating conditions. The Board acknowledged their resilience, pledging to restore operational stability and professional dignity in the coming days.
With legal proceedings ongoing and the Board poised to enforce leadership changes, the Nairobi Hospital’s future hangs in the balance.
Observers warn that failure to resolve the crisis swiftly could further erode trust in one of Kenya’s leading healthcare institutions.
