Court frees 4 accused in Nairobi Hospital case on Ksh5M personal bond
By Zipporah Ngwatu, March 16, 2026A Nairobi court has freed four individuals charged over actions said to have been committed while serving as directors of Kenya Hospital Association Limited on a personal bond of Ksh5 million each after they were arraigned and charged with several counts.
The Kenya Hospital Association (KHA) is a non-profit organisation that owns and operates The Nairobi Hospital.
Chris Bichange, Samson Kinyanjui, Job Obwaga, and Valarie Akinyi are charged with failure to lodge the company’s 2024 financial statements with the Registrar.
According to the charge sheet, the four, on or before December 31, 2024, while at Nairobi Hospital and serving as directors of Kenya Hospital Association Limited, jointly with others not before the court, failed to lodge the company’s 2024 financial statements with the Registrar.
In another count, the Directorate of Public Prosecutions (DPP) has charged Bichange with conflict of interest by a director, contrary to Section 146(1) as read with Section 146(2) of the Companies Act, Chapter 486, Laws of Kenya.
The prosecution states that between November 2023 and March 15, 2024, while serving as a director, Bichange had a direct interest that conflicted with the interests of the company after allegedly receiving a total of Ksh4.8 million from Meritorious Insurance Agency.
In an alternative charge, Bichange is accused of accepting a benefit from a third party, contrary to Section 147(1)(a) as read with Section 147(5) of the Companies Act.
Between the same dates, he is alleged to have unlawfully accepted a cash payment of Ksh4.8 million from the same agency — a company contracted by Kenya Hospital Association Limited — with the benefit allegedly linked to his position as a director.
The State has also charged Samson Mbuthia Kinyanjui with unlawfully accepting a benefit, namely a cash payment of Ksh3,999,996 from Meritorious Insurance Agency, a company contracted by Kenya Hospital Association Limited, with the benefit said to be attributed to his position as a director, thereby giving rise to a conflict of interest.
“On dates between December 23, 2024, and March 17, 2025, while serving as a director of Kenya Hospital Association Limited, he had a direct interest that conflicted with the interests of the said company by receiving a total of Ksh3,999,996 from Meritorious Insurance Agency, a company contracted by Kenya Hospital Association Limited,” the charge sheet reads.
The DPP has also charged Bichange, jointly with others not before the court, with failing to lodge the Kenya Hospital Association Limited financial statements for the year 2022 with the Registrar on or before December 31, 2022, at Nairobi Hospital.
In an alternative charge, he is accused of failing to lodge the company’s financial statements for the year 2023 on or before December 31, 2023.
Appearing before Milimani Principal Magistrate Teresia Nyangena on Monday, March 16, 2026, the four denied the charges, and a plea of not guilty was entered.
Defence lawyers urged the court to release the accused persons on bail, arguing that they are senior citizens with fixed abodes and are therefore not a flight risk. The prosecution did not oppose their release.
The court granted each of them a personal bond of Ksh5 million and required each to provide two contact persons.
“I have noted again the age of the accused persons, especially Obwaga, and I have also noted that these are people who cannot be a flight risk. For those reasons, I have allowed a personal bond of Ksh5 million with two contact persons,” Magistrate Nyangena ruled.
She further directed that the accused persons attend court whenever required, warning that failure to do so would result in the bond being cancelled and stricter terms being imposed.
The matter will come up for a pre-trial hearing on March 31, 2026.