The Battle for Nairobi Hospital

Hello! It's Brian from The Kenyan Wall Street with the latest edition of our daily newsletter. Below are our stories for the day…

On the Corridors of Justice : The Battle for Nairobi Hospital 

The High Court has halted an investigation into Nairobi Hospital, suspending a search warrant that authorized the Directorate of Criminal Investigations (DCI) to access sensitive records, while also lifting a freeze on the hospital's capital expenditures. The Kenya Hospital Association (KHA), represented by advocate Gitobu Imanyara, argued that the probe was a tactic to intimidate senior managers amid internal conflicts, risking patient confidentiality and breaching the Health Act of 2017 and the Data Protection Act. Justice Peter Mulwa's decision allows the hospital to resume infrastructure projects crucial for its financial stability, including a KSh 4.2 billion offshore loan meant for critical equipment upgrades like cancer treatment devices. However, concerns over mismanagement, asset depletion, and a KSh 3 billion debt crisis persist. The hospital's CEO, Dr. Felix Osano, and 11 senior managers were granted anticipatory bail, contending that the probe was a civil dispute over board membership rather than a legitimate criminal investigation. Despite the reprieve, tensions remain high, with Nairobi Hospital doctors threatening to strike as boardroom conflicts escalate. Read more in this article »»»»»

Mbadi’s IMF U-turn

Kenya has applied for a new IMF loan program, seeking to roll over about $800 million left unused from its existing arrangement, according to Treasury CS John Mbadi. The decision to forgo the ninth and final review of the current IMF program, set to expire next month, stirred speculation of a fallout, which Mbadi denied. He asserted that Kenya's economic fundamentals remain strong, countering claims that the country failed to meet IMF targets. Despite this, S&P Global Ratings warned that any disruption to IMF funding could complicate Kenya’s debt strategy. Meanwhile, the World Bank’s $800 million loan and a $1.5 billion pledge from the UAE could face delays. Mbadi remains optimistic about securing a new IMF program by July. Read here »»»»»

Today's Poll

Kakuzi Faces Losses, Eyes New Markets

Kakuzi PLC reported a pre-tax loss of KSh 167 million for 2024, primarily due to adverse weather, currency fluctuations, and geopolitical instability in the Middle East, which disrupted avocado exports. The company’s revenue dropped to KSh 4.79 billion from KSh 5.40 billion in 2023. Managing Director Chris Flowers attributed the decline to the weakening Kenyan Shilling against the Euro and currency controls in key export markets. The Shilling's 15% depreciation against the Euro increased the firm's exposure to forex risks. Facing the future, Kakuzi believes that opportunities in Europe and Asia have been saturated, and new markets ought to be explored. Here are the details»»»»»

Gold Scandal Casts Shadow on IEBC Candidate

The interviews for the new IEBC chairperson began this week, marked by the controversial appearance of former Chief Registrar Anne Amadi, who faces allegations of involvement in a $100 million gold scandal through her former law firm. Accused of defrauding a British citizen in a transaction involving 1,500 kilograms of gold, Amadi denied any wrongdoing, asserting she left the firm in 2014 and lacks expertise in gold trade. As the IEBC seeks to rebuild credibility after two years of dysfunction, the panel also interviewed former East African Court of Justice Judge Charles Ayako Nyachae and Edward Katema Ngaywa, who emphasized public trust and ethical reforms. Here is more »»»»»

More Stories: 

• Finance. KCB Group has ramped up its plan to consolidate agent banking channels into one platform with the planned acquisition of Riverbank Solutions, a fintech, for an undisclosed sum.

• Audit. The sale of units built through the government’s affordable housing project could be derailed due to lack of land ownership documents, the Auditor-General’s report reveals.

• Finance. Ecobank Kenya has injected KSh 3.5 billion into its capital base, ramping up its total core capital to KSh. 8.5 billion as it works to meet the Central Bank of Kenya’s (CBK) new capital requirements.

On your watchlist

Yesterday's Poll Results

Do you think the Affordable Housing Program will encounter massive legal challenges in the future?

🟩🟩🟩🟩🟩🟩 Yes (88%)

⬜️⬜️⬜️⬜️⬜️⬜️ No (12%)