Mediheal ordered to pay former employees Sh400m as woes deepen

National
By Julius Chepkwony | Jun 27, 2025

The woes facing Mediheal Hospital have deepened after a court ordered them to pay 63 expatriate professionals it owes over Sh400 million.

This follows a decision by the Employment and Labour Relations Judge Anna Ngibuini Mwaure.

In April 2024, 63 individuals claimed to be employed by the Mediheal Group of Hospitals as expatriates and had various contracts of employment.

They claimed the hospital owed them salary arrears amounting to Rupees 186,069,164 (Sh280, 005,733.27) and attempts to recover them were futile.

The medical professionals said that they were forced to resign because of non-payment of their salaries.

They added that Mediheal Group Limited and Mediheal Hospital and Fertility Centre Rwanda had made several promises to pay, but failed to do so.

On October 27, 2024, the chairman, Dr Swarup Mishra, wrote to the expatriate employees thanking them for “their patience in waiting for the payments of their salaries.” Mediheal claimed they were waiting for the lender to advance some money to meet such obligations.

The medical professionals said they attempted to invoke an arbitration clause in their contract, but the facility did not respond, forcing them to move to court.

Mediheal Group of Hospitals, in their response, denied the claims.

“The salary arrears were never settled despite the various promises. The Claimants then attempted to propose the appointment of an arbitrator as per their letter of 27th November 2023. It would appear the Respondents did not respond as pertains to appointment of an arbitrator,” read the judgment of the court in part.

The court noted that the 63 were willing to resolve the dispute through Alternative dispute mechanisms but met resistance from the hospital.

“Failure to pay the employees’ salary constantly for several months goes to the root of the contract, and it leaves the employee vulnerable and embarrassed. The court holds that such behavior would push any employee to resign as he is not getting the fruit of their labour,” read the judgment.

The court also noted that the hospital did not oppose the claim, as it only filed a response but did not provide in evidence in court. Neither did they file any submissions.

The court ruled that the medical professionals had proved their case, and they had established by their letters of appointment that they were Mediheal employees.

“The court is satisfied that the Claimants hereto were employees of the Respondent. Further, the Respondent withheld and failed to pay them salaries, forcing them to resign, albeit involuntarily. To date, there is no evidence that Claimants' salaries have been settled,” ruled the court.

The court viewed that the 63 were constructively terminated from their employment once their salaries were withheld for some months and held that they were entitled to their salary arrears as tabulated in the amended Memorandum of Claim dated April 8, 2024, and all amounting to 186,069,164 Indian Rupees.

Mediheal was also ordered to pay the 63 salary for three months instead of notice as per their letters of appointment, and 6 months' equivalent for general damages for unfair termination due to constructive dismissal.

They were also awarded interest at court rates at 14 per cent per annum from the date of the judgment till full payment.