Hospital in Nairobi seeks court to dismiss debt case worth KES 32 million
The Nairobi Hospital is currently embroiled in a legal dispute with Opticom Limited over a debt of approximately Sh32 million, stemming from a contract for the supply and installation of pedestrian and baggage security scanners.
According to court documents, Opticom was contracted to deliver Astrophysics XIS-3335 scanners or an equivalent brand approved by the hospital. However, in September 2023, Opticom delivered and installed a different brand, Eastmage-E15536, without prior approval, which Nairobi Hospital claims breached the contract.
This dispute escalated when Opticom initiated insolvency proceedings against the hospital over the unpaid Sh32 million. In response, Nairobi Hospital moved to the High Court to stop these insolvency/liquidation proceedings, arguing that the petition is premature since the contract mandates arbitration to resolve disputes and that the insolvency move threatens critical healthcare services and the hospital’s operational capacity.
The hospital's lawyer, Moses Owuor, argues that the supplied scanner was not up to the required standard. Meanwhile, Opticom, represented by CM Advocates LLP, has argued that the hospital’s delay in objecting to the equipment implies acceptance.
The case is currently before Commercial Court Judge Peter Mulwa, with a hearing scheduled for Wednesday, September 24, 2025, after court recess. Any person can appear in court to support or oppose the making of an order for liquidation.
The ongoing court proceedings aim to resolve the dispute and halt insolvency actions against Nairobi Hospital, a major private healthcare provider with a 70-year history. The hospital maintains its position that the debt is illegitimate, claiming there is no evidence to show that it is incapable of paying debts if the same are legitimate.
The exact amount Opticom alleges the hospital owes was not disclosed, but it is believed to be due to a dispute over a pedestrian scanning machine. Opticom has responded with a demand for Sh32 million, and a copy of the petition can be obtained from the court's registry for a regulated charge.
The court notice does not specify any new debts owed by the Nairobi Hospital to Opticom Limited, but the hospital has filed a case seeking the dismissal of the case over the Sh32 million debt. This dispute centres around allegations of breach of contract regarding equipment quality and approval, the contested Sh32 million debt, and ongoing court proceedings aimed at resolving the dispute and halting insolvency actions against Nairobi Hospital.
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