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Suspect charged over Ksh11 million SHA fraud

Detectives from the Directorate of Criminal Investigations (DCI) have arraigned a Nairobi-based medical facility director accused of fraudulently claiming more than Ksh11 million from the Social Health Authority (SHA).

The suspect, Mishael Otieno Okumu, appeared in court following investigations conducted by officers from the Investigations Bureau at DCI headquarters.

According to investigators, Okumu is the director of Salama Yard Medical Center Laboratory and Maternity Services, a health facility located in the Pipeline area of Nairobi County. Authorities claim the facility was involved in a series of irregular practices that enabled the submission of fraudulent medical claims to the Social Health Authority.

Preliminary investigations revealed suspicious admission patterns and alleged misuse of practitioner credentials within the facility. Detectives also cited cases of expired or unauthorised professional credentials being used in medical records.

Investigators further allege that the facility submitted false patient admissions and irregular billing records as part of a wider scheme aimed at obtaining payments from the national health scheme.

The suspect and the medical facility were charged with seven offences related to fraud and financial crime.

Among the charges brought before the court are obtaining registration by false pretence contrary to Section 320 of the Penal Code, making a false statement, and falsification of documents contrary to Section 48(1)(c) of the Social Health Authority Act.

Okumu also faces charges linked to financial crime under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA). These include acquisition of proceeds of crime and use of proceeds of crime, offences which authorities say relate to the alleged fraudulent claims made to the Social Health Authority.

During the court appearance, the suspect pleaded not guilty to all the charges.

The court ordered that he be remanded at Capitol Hill Police Station as he awaits the determination of his bail and bond terms.

The court is expected to issue its ruling on March 16, 2026, after receiving and reviewing a probation report regarding the accused.

The Directorate of Criminal Investigations has reiterated its commitment to pursuing justice in cases involving alleged misuse of public healthcare funds.

Officials say investigations into the Social Health Authority fraud are ongoing and warned that any individuals found culpable will face the full force of the law.

Authorities have emphasised that protecting public resources and safeguarding the integrity of national healthcare programmes remains a key priority.

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