Directors of Kenya Hospital Association Limited, the entity that operates the Nairobi Hospital, have been charged before a Nairobi court with conflict of interest and failure to comply with statutory financial reporting requirements.
Chris Bichange Munga Nyamaratandi, Samson Mbuthia Kinyanjui, Job Lukuru Obwaga and Valarie Akinyi Gaya appeared before Milimani Principal Magistrate Teresia Nyangena and denied the charges against them.
Munga Nyamaratandi is accused of receiving a total of Sh4.8 million from Meritorious Insurance Agency, a company contracted by Kenya Hospital Association Limited, in circumstances said to have created a conflict between his personal interests and those of the company.
According to the charge sheet, Nyamaratandi allegedly received the money between November 10, 2023, and March 15, 2024, while serving as a director of the association.
The court heard that the payments constituted an unlawful benefit arising from his position as a director and amounted to a conflict of interest contrary to Section 146(1) of the Companies Act, which requires directors to avoid situations where their personal interests conflict with the interests of the company.
In a similar count, Samson Mbuthia Kinyanjui is accused of receiving Sh 3,999,996 from the same insurance agency between December 23, 2024, and March 17, 2025, while serving as a director of the Kenya Hospital Association Limited.
The prosecution alleges that the payment was an unlawful benefit linked to his position as a director and gave rise to a conflict of interest with the company.
The duo are also facing additional charges related to failure to comply with statutory reporting requirements under the Companies Act.
Nyamaratandi is accused of failing to lodge the company’s financial statements for the year 2022 with the Registrar on or before December 31, 2022, while serving as a director of the association.
He is further charged with failing to file the company’s 2023 financial statements with the Registrar by December 31, 2023.
In another count, Nyamaratandi, Kinyanjui, Obwaga and Gaya are jointly charged with failing to lodge the company’s financial statements for the year 2024 with the Registrar by December 31, 2024.
The prosecution states that the alleged failure to submit the statutory financial returns constitutes an offence under Section 683(1) as read with Section 692(1) of the Companies Act.
The court released the four on a bond of Sh 5 million each.
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