Consultant doctors at the Nairobi Hospital have called for an overhaul of the board of management, as power wrangles continue to rock one of Kenya’s top healthcare institutions.
Charles Wambugu, a member of the Kenya Hospital Association (KHA), the organisation that owns the hospital, says the doctors are frustrated and wish to have the hospital back on its feet, but under new management.
The doctors say the Sh4.2 billion loan that the hospital wants to acquire does not make sense, as the hospital earns enough and does not need to take out such a huge amount.
Robert Shaw, a member of KHA and former board member of the hospital, says the need to take out a loan of that magnitude offshore is a red flag.
“Nairobi Hospital for many years has been making profits…and the hospital has financially been in very good shape, with quite a lot of money that has been re-invested. Now the board wants to borrow Sh4.2 billion on an offshore loan using the hospital’s assets as collateral. This does not add up,”he said.
Luke Musau, also a member of KHA and a doctor at the hospital, questioned why the hospital chose to borrow offshore: “Sh4.2 billion can be syndicated within local banks. Offshore borrowing is a very expensive exercise.”
The doctors also questioned why the loan, despite being taken offshore against hospital assets, had not been authorised by KHA members.
Mr Wambugu said there was a clear disregard for governance policies that are set in place to ensure the hospital runs smoothly.
“ The loan represents 35 per cent of the current hospital assets which is a significant percentage. It is a concern that of the Sh4.2 billion, there is Sh2 billion, with no specification on what items it will buy,” said Nguru Wachira, also a member of KHA.
During a June board meeting, the hospital’s management decided to use the Sh4.2 billion it intends to borrow to buy medical equipment worth Sh2.4 billion, Sh970.4 million for equipment maintenance, Sh501.2 million for software, Sh215.8 million for furniture and fittings, Sh50.1 million for software, Sh41.8 million for vehicles, and Sh19.2 million for infrastructure improvements.
The doctors also noted that the dispute had now affected the hospital’s operations, with some doctors choosing to attend to their patients at other facilities.
