Four directors linked to the management of The Nairobi Hospital have been released on bond after denying criminal charges related to alleged conflict of interest over the loss of Sh 8 million at the facility and failure to file statutory financial statements.

Dr. Job Obwaka, the chairman of the hospital’s board, appeared before Milimani Law Courts alongside co-accused Vice Chairman and Lawyer Samson Kinyanjui and directors Chris Bichage Munga Nyamaratandi and Valarie Akinyi Gaya, where they pleaded not guilty to multiple charges before Senior Principal Magistrate Teresia Nyangena.

After denying the charges, the magistrate released the four on a Sh5 million personal bond each with two contact persons.

“I have carefully considered the nature of the offences and the status of the accused persons who are not in the class of flight risks. I therefore order their release on a personal bond of Sh 5million with two contact persons each,” the magistrate ordered.

While granting them bond also warned the accused persons that they risk their bonds being cancelled should they flout the bond terms.

She directed the prosecution to supply the accused persons with evidence material before the lapse of 14 days.

After spending over 30 hours in custody, the accused persons were charged after the Office of the Director of Public Prosecutions okayed their prosecution on Monday at 2 pm.

The four top officials were charged with offences relating to their roles as directors of the Kenya Hospital Association Limited, the entity that operates the Nairobi Hospital.

According to the charge sheet, Nyamaratandi faces a count of conflict of interest as a director contrary to the Companies Act after allegedly receiving payments from a company doing business with the hospital.

Prosecutors claim that between November 10, 2023, and March 15, 2024, Nyamaratandi received Sh4.8 million from Meritorious Insurance Agency, a firm contracted by Kenya Hospital Association Limited, thereby creating a conflict with the interests of the company.

“On dates between 10th November 2023 and 15th March 2024 within the Republic of Kenya, while serving as a director of Kenya Hospital Association Limited, he had a direct interest that conflicted with the interest of the said company by receiving a total of Sh 4,800,000 from Meritorious Insurance Agency, a company contracted by Kenya Hospital Association Limited,” the charge sheet states.

In an alternative charge, prosecutors say the payment amounted to unlawfully accepting a benefit from a third party because of his position as a director.

Kinyanjui faces a similar charge after allegedly receiving Sh3,999,996 from the same insurance agency between December 23, 2024, and March 17, 2025, while serving as a director of the association.

The prosecution alleges the payment constituted a conflict of interest under the Companies Act.

The four directors are also jointly charged with failing to lodge financial statements for the company with the Registrar within the stipulated timelines.

Court documents indicate that the company failed to submit financial statements for the years 2022, 2023, and 2024 as required by law.

“on or before the 31st day of December 2024 at Nairobi Hospital in Nairobi County, jointly with others not before the court, while serving as directors of Kenya Hospital Association Limited, failed to lodge with the Registrar the company’s financial statements for the year 2024,” the charges stated.

During the bail application, State Prosecutor Nora Otieno told the court that the prosecution did not oppose their release on bond.

Defence lawyers, however, urged the court to impose lenient bail terms, arguing that the offences were minor and carried relatively low penalties.

Senior Counsel Cliff Ombeta, appearing for Nyamaratandi alongside lawyers Danstan Omari and Sam Nyaberi, asked the court to allow the accused to rely on the anticipatory bail earlier deposited in court.

“The personal bond or the cash bail of Sh100,000 earlier deposited in court can apply,” Ombeta submitted.

Lawyer Charles Kanjama, representing Dr. Obwaka, told the court that the offences carried a maximum penalty of Sh200,000 and did not warrant strict bail conditions.

“The maximum penalty does not exceed Sh200,000. This is not a matter that ought to attract harsh bail terms,” Kanjama said.

He further told the court that his client was not serving as a director when some of the alleged offences were committed and asked the court to consider his age and medical condition.

“Dr. Obwaka is a senior citizen aged 80 years and suffers from medical conditions. These are not offences of potential gravity, and the court should consider a token cash bail of Sh10,000,” the lawyer added.

Another defence lawyer, Rogers Sagana, also presented a High Court order issued by Justice Nixon Sifuna indicating that the accused had earlier been granted anticipatory bail of Sh100,000.

The magistrate nevertheless ordered that each accused person be released on a Sh5 million personal bond with two contact persons.

The matter is mentioned for pre-trial on March 31, 2026.