Former Group Chief Executive Officer, Hospital Holdings Investment (HHI), Steve Okeyo. PHOTO | DIANA NGILA | NMG
The Labour court has ordered AAR Hospital to negotiate an out-of-court settlement with its outgoing Group CEO (GCEO), Steve Okeyo.
Mr Okeyo was, until December 8, the GCEO of Hospital Holdings Investment (HHI), the investment and holding company of which AAR Hospital is the flagship subsidiary. He also served as a board member of all the five subsidiaries of HHI.
HHI oversees the management of three other healthcare companies in Kenya and Uganda –AAR Healthcare, Kampala Hospital and Nakasero Hospital, and boasts high-profile investors, including the International Finance Corporation (IFC) of the World Bank and European sovereign funds like French Proparco, SwedFund, FinnFund, and Denmark’s IFU.
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“Counsels are encouraged to embrace the court-annexed mediation as agreed and endeavour to resolve the matter in good faith and in the best interests of their clients,” Justice Jacob Gakeri ordered.
Having fallen out with his employer, Mr Okeyo challenged the decision to be declared redundant. He was serving a notice period that lapsed on December 9, 2023.
Mr Okeyo argued that the impending termination of employment on account of redundancy was malicious and did not disclose the criteria used or other roles affected.
Mr Okeyo’s advocate, Morara Omoke, had asked the court to consider giving an injunction to the notice of redundancy. He argued that it would enable the parties to negotiate in good faith. The process of negotiation, Mr Omoke told the court, would be of no importance if Mr Okeyo was already declared redundant.
HHI, however, told the court that by not letting go of Mr Okeyo, the restructuring process that it was undertaking would stall –much to its disadvantage.
Further, its advocate argued that it would be unfair to force it to retain a severed relationship with its employees, especially because confidence and trust had been lost.
The court filings reveal details of Mr Okeyo’s fallout with the board, especially on the strategic direction of the new AAR Hospital on Kiambu Road.
The construction was managed by employees from the lead investor –Holland’s International Fund for Health in Africa (IFHA).
President William Ruto commissioned it in February 2023.
Mr Okeyo was hired by HHI on June 1, 2021, with a brief to run the new facility, stabilise the rest of the businesses, and position them for growth.
The court shall mention the matter on December 20, 2023.
In his ruling, Justice Gakeri observed that it was clear that HHI had resolved “to let go its GCEO and proposes to resolve the dispute out of court which in the court’s view is the most appropriate mechanism for both parties as it is expeditious, efficient, cost-effective, less acrimonious and most significantly private.”
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Justice Gakeri said that although Mr Okeyo sought the court’s intervention at the right time, he was not convinced that the interim orders to stop the restructuring process being undertaken by HHI would be an appropriate remedy.
“Although the applicant came to court at the right time… this court is not persuaded that interim orders to stop the restructuring process being undertaken by the respondent (HHI) would be an appropriate remedy in the circumstances as it would [among other things] stall a legitimate process altogether until the suit herein is heard and determined,” observed Justice Gakeri.
Mr Okeyo and his employer, through their advocates, agreed that the matter proceeds under the court-annexed mediation.
