The Labour court has issued a directive compelling AAR Hospital, a flagship subsidiary of Hospital Holdings Investment (HHI), to engage in an out-of-court settlement with its outgoing Group CEO, Steve Okeyo.

Okeyo, who also held a position on the board of all five subsidiaries of HHI, contested his redundancy, which took effect on December 9, 2023.

Justice Jacob Gakeri, presiding over the case, emphasized the court's preference for an amicable resolution, stating, “Counsels are encouraged to embrace the court-annexed mediation as agreed and endeavour to resolve the matter in good faith and in the best interests of their clients.”

Okeyo's legal representative, Morara Omoke, sought an injunction against the redundancy notice, asserting that it would facilitate sincere negotiations between the parties.

Omoke argued that negotiating after Okeyo's official redundancy would render the process futile.

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In response, HHI contended that retaining Okeyo would impede its ongoing restructuring efforts, emphasizing the necessity of severing ties due to lost confidence and trust.

The court filings exposed details of the dispute, particularly centred on the strategic direction of the newly constructed AAR Hospital on Kiambu Road.

The hospital's construction, overseen by employees from the lead investor, Holland's International Fund for Health in Africa (IFHA), was commissioned by President William Ruto in February 2023.

Okeyo, appointed by HHI on June 1, 2021, was tasked with overseeing the new facility, stabilizing existing businesses, and positioning them for growth.

Justice Gakeri acknowledged HHI's intention to settle the matter out of court, deeming it the most appropriate mechanism for both parties.

He commented, "it is expeditious, efficient, cost-effective, less acrimonious and most significantly private."

However, despite recognizing Okeyo's timely legal intervention, Justice Gakeri expressed scepticism about issuing interim orders to halt HHI's restructuring process, deeming it an inappropriate remedy.

The court is scheduled to revisit the case on December 20, 2023, as the parties navigate the complexities of the out-of-court settlement.