Dr Njue has been replaced by Dr Daniel Mugendi in acting capacity.
The Embu County Public Service Board has suspended Embu Level Five Hospital Chief Executive Officer Moses Njue following an allegation that he slapped a doctor.
Board Secretary Johnson Nyaga on Monday said Dr Njue has been replaced by Dr Daniel Mugendi in acting capacity.
"Following a public outcry occasioned by an allegation by Dr Mary Njoroge, a consultant obstetrician/gynaecologist, against the CEO of Embu Level Five Hospital, the executive has deliberated and has resolved to restructure the hospital management pending further investigation," part of the statement read.
Demonstrations on Monday by medics from the hospital over the allegation paralysed services.
Mr Nyaga had earlier met Dr Njoroge and Dr Njue before the public service board made the decision.
"I wish to apologise on behalf of the government. The governor (Martin Wambora) is aware of what is happening," Mr Nyaga said.
Doctors, clinical officers, nurses, laboratory technicians working at the institution protested outside the Dr Njue's office calling for his resignation.
Kenya National Union of Nurses branch Secretary Joseph Ngwasi and Kenya Medical Practitioners and Dentist Union (KMPDU) Upper Eastern Secretary- General Mark Ndung’u later called off the protests.
"We welcome the move and hope these investigations are expedited so that justice is sought for Dr Njoroge. .. Work resumes immediately as we diligently continue to service the people of Embu and Kenyans as a whole," Dr Ndung’u said.
Mr Ngwasi said professional ethics must be upheld at all times.
Dr Njue has denied the allegation and said the medics were opposing him for introducing stringent measures to curb lateness and abdication of duty.
For example, he recalled that on the material day Dr Njoroge - together with many of her colleagues - arrived late (at 10:30am).
"There is a new cloaking system in the hospital which is covering the whole county. The doctors have vowed they will not sign that thing. It started last week and everyone in the hospital is signing it but the doctors have refused, starting with the consultants.
"The doctors have a notorious habit of coming to work late, delaying patients and my office as CEO is very unhappy with that," he said.