Veteran obstetrician and gynecologist Dr. Job Lukuru Obwaga, who also serves as the Chairman at The Nairobi Hospital, has been charged alongside three other directors over alleged conflict of interest and failure to comply with company reporting requirements.
Dr. Obwaga was arraigned together with Chris Bichange Munga Nyamaratandi, Samson Mbuthia Kinyanjui, and Valarie Akinyi Gaya in a case filed by the Office of the Director of Public Prosecutions.
According to the charge sheet, the four are accused of offences under the Companies Act, including conflict of interest by a director and failure to lodge financial statements with the Registrar.
In the first count, The DPP allege that Chris Bichange Munga Nyamaratandi, while serving as a director of Kenya Hospital Association Limited, received a total of Sh4.8 million from Meritorious Insurance Agency, a firm contracted by the association, between November 10, 2023 and March 15, 2024. The payment is said to have created a conflict between his personal interests and those of the company.
In the alternative charge, he is accused of unlawfully accepting the same amount as a benefit from a third party linked to his position as a director.
The second count relates to Samson Mbuthia Kinyanjui, who is alleged to have received Sh3,999,996 from the same insurance agency between December 23, 2024 and March 17, 2025, also creating a conflict of interest while serving as a director of the association.
The directors are also facing multiple counts related to failure to file financial statements with the Registrar as required by law.
In one of the charges, Nyamaratandi is accused of failing to lodge the company’s financial statements for the 2022 financial year on or before December 31, 2022, while serving as a director.
He faces a similar charge for allegedly failing to lodge the company’s financial statements for the 2023 financial year by December 31, 2023.
In a separate count, all four directors — Nyamaratandi, Kinyanjui, Dr. Obwaga, and Gaya — are accused of jointly failing to file the company’s financial statements for the 2024 financial year by December 31, 2024.
The prosecution alleges that the offences were committed while the accused persons were serving as directors of Kenya Hospital Association Limited, the entity that manages The Nairobi Hospital.
The case is expected to proceed before the court as the prosecution seeks to prove that the directors breached their statutory duties under company law.
