The High Court declined to certify as urgent an application by The Nairobi Hospital seeking to halt insolvency proceedings filed against it by Opticom (K) Limited.
Justice Peter Mulwa instead directed that the hospital’s application be served on Opticom, with the contractor required to file a response within 14 days.
Mulwa further directed the matter to be mentioned on November 6, 2025.
The Nairobi Hospital through their lawyer Moses Owuor had sought to stay insolvency proceedings launched by Opticom over a disputed debt of Sh32.2 million relating to the supply and installation of a security system.
Owuor alleged that Opticom breached the contract by delivering and installing a different brand of pedestrian scanning equipment than specified, resulting in unsuitable equipment which was formally rejected.
Instead of engaging the agreed dispute resolution process, Opticom filed insolvency proceedings, which the hospital claims is an abuse of court process designed to frustrate its contractual remedies.
“The proceedings herein are therefore a malicious abuse of court and are intended to embarrass and frustrate the Applicant which is merely exercising its contractual remedies by withholding the alleged debt on account of the Petitioner/Respondent’s refusal to perform its obligations as stipulated in the bid and agreement,” read the court documents.
According to Owuor, In December 2022, The Nairobi Hospital awarded a tender to Opticom for the supply and installation of a pedestrian scanning system at a contract price of approximately Sh51.1 million, with a project duration of eleven weeks.
The contract explicitly required the equipment to be the Astrophysics XIS-3335 model or an approved equivalent.
However, in September 2023, Opticom delivered and installed an Eastimage E15536 scanner without the hospital’s approval.
Upon inspection, the hospital identified multiple defects rendering the equipment unsuitable, leading to a formal rejection and a demand for replacement or removal in December 2023.
Instead of rectifying the breach or engaging in the agreed arbitration dispute resolution process, Opticom proceeded to file insolvency proceedings against the hospital in August 2024.
Nairobi Hospital is engaged in a leadership tussle that has grounded some operations.
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