BY MOSES GITAU
The Nairobi Hospital is a national asset and one of Kenya’s heritage brands
The board of management of the Kenya Hospital Association (KHA) has come out to state that the Nairobi Hospital remains financially sound and stable even as it dismissed allegations of corruption and poor governance.
Dr Chris Bichage, the Chairman of the Board of Management, Kenya Hospital Association, said that the allegations being peddled against the hospital including inability to pay suppliers are unsubstantiated, revealing that quarter 1 of 2024 has already seen the hospital post a surplus of Kshs88 million in revenue.
“On behalf of the board of management, I dare say that the allegations being peddled around are choreographed out of frustrations by individuals who have failed to manipulate our sound governance structures for their own selfish gain and now have resorted to mounting a smear campaign against the hospital,” said Dr Bichage.
KHA is a company limited by guarantee with an authorized membership of 10,000 and operates a network of hospitals and clinics in Kenya including the Nairobi Hospital- one of East Africa’s most advanced medical facilities.
The Nairobi Hospital, which will be celebrating 70 years of existence later this year, is a national asset and one of Kenya’s heritage brands with its staff establishment drawn from nearly all the country’s ethnic communities.
Dr Bichage noted that the hospital’s board of management “with unstinting” support from the board of trustees, has put in place several policies, “which play a crucial role in enhancing good governance within the hospital.”
This, Dr Bichage says, positions the hospital within the global landscape of good governance standards.
“As a board, we challenge anyone out there who has evidence of corruption within the hospital to come forward and table it so that the culprits can be brought to book as per the laid down policies and procedures,” said Dr Bichage.
In terms of the hospital’s financial performance, Dr Bichage noted that the hospital’s financial base is “healthy” with a bed capacity averaging above 70 percent.
This even as he disclosed that staff salaries are paid by the 24th of every month and that the staff’s low interest mortgage and car loan facilities are already being utilized.
Documents in our possession show that in the last five years, the monthly average payments made by Nairobi Hospital to consultant doctors has been increasing from Kshs93.70 million in 2020 to Kshs141.53 million in 2024.
In the year 2021 Kshs108.21 was the hospital’s monthly payment to the consultant doctors, Kshs132.6 in 2022 and Kshs135.59 million in 2023.
Dr Bichage also revealed that the hospital is performing well financially.
From a deficit of Kshs565 million in 2022, largely due to the declined occupancy at the UN Nairobi Hospital East Wing that was exclusive for Covid-19 patients in 2021 and also the inflationary pressure and the depreciation of the Kenyan shilling against the major world currencies, at the time, the year 2023 registered revenue surplus of over Kshs190 million.
This even as it emerged that the overall 2024 quarter 1 performance already has a surplus of Kshs88 million and “with the several initiatives and strategies put in place by the board of management, 2024 has more prospects for improved financial performance” of the hospital.
“From these figures it is clear that that this is not an institution that is collapsing as being alleged by some disgruntled individuals.”
Infrastructure projects and investments in medical equipment is a critical component of the hospital’s growth agenda to ensure that it remains up to date with modern infrastructure and new technology to enhance patient care.
According to Dr Bichage, all the projects that were pending have already been completed “except those that have cases pending in court or under arbitration.”
This comes as it emerged that at least Kshs844 million has been invested in the hospital’s medical equipment and Kshs324 million in the infrastructure projects.
“It is important to note that both equipment acquisition and the infrastructure projects have been financed through internally generated sources. We have not taken any loans to finance these heavy investments,” says Dr Bichage.
Recruitment of new members to KHA is such that all Kenyans of “majority age” who are interested in accessing the hospital’s services as members are at liberty to join the company’s membership.
“Provided that these Kenyans apply for membership and satisfy the board as to the reasons for seeking membership of the company,” says Dr Bichage adding; “they will be granted admission.”
“There is in place a very clear procedure for seeking membership and approval. The application of every person who seeks membership follows this procedure. The board considers the applications and grants admission as it deems fit. All members of the company gained admission through this process.”