Speaking to Capital News on Monday, Duale said the hospital operates under a unique structure as a company limited by guarantee and is owned by members through the Kenya Hospital Association (KHA).
“The Nairobi Hospital is a company limited by guarantee. It belongs to its members and not shareholders, so it cannot be acquired the way people are claiming,” Duale said.
His remarks come as the hospital finds itself at the center of a deep governance crisis, financial struggles, and dramatic arrests of top officials over the weekend.
The saga escalated after police arrested three senior hospital board officials namely: Chairman Dr. Job Obwaka, Vice Chairman Samson Kinyanjui, and former chairman Dr. Chris Bichage over allegations of falsifying the hospital’s membership register and conflict of interest.
The arrests triggered outrage from sections of the medical fraternity, with some leaders claiming the government was attempting to force changes at the hospital’s leadership.
However, Duale insisted the state has no interest in taking over the facility.
Founded in 1954, The Nairobi Hospital is one of the most prominent private medical institutions in East Africa.
Despite its reputation, the hospital has been grappling with a prolonged governance battle within the Kenya Hospital Association, the non-profit body that owns and runs the facility.
The dispute has seen board elections challenged in court, accusations of mismanagement, and a bitter leadership fight over control of the multi-billion-shilling institution.
Financially, the hospital has also been under pressure, recording losses exceeding Sh3 billion in 2024 while supplier debts reportedly rose to more than Sh4 billion.
The situation worsened in 2025 when several insurance firms temporarily suspended services at the hospital following disagreements over pricing and billing concerns.
Some political leaders incluiding former deputy president Rigathi Gachagua have accused President William Ruto’s administration of attempting to influence the hospital’s leadership.
But Duale rejected the accusations, insisting that the hospital’s governance matters remain internal to the association that owns it.
