Hospital Director Charged Over Sh2.5 Million SHA Fraud

A hospital director has been arraigned before the Milimani Law Courts in Nairobi over an alleged Sh2.5 million fraud targeting the Social Health Authority (SHA).

Josephat Ouma Omoto, the Director of Zion Ahadi Hospital in Kakamega County, is accused of masterminding a fraudulent scheme aimed at unlawfully obtaining public funds through falsified medical claims submitted to SHA.

According to the prosecution, Omoto allegedly used false representations and manipulated health-related documents to fraudulently acquire Sh2.5 million from the authority. Investigators say the claims were deliberately fabricated to mislead SHA into releasing funds that were not legitimately owed.

Omoto faces several charges, including obtaining money by false pretences contrary to Section 313 of the Penal Code, and falsification of health documents under Section 48(5) of the Social Health Authority Act. He is also charged with acquiring and using proceeds of crime, in violation of Section 4(a) and (b) as read with Section 16(1) of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).

He denied all the charges when he appeared in court. The trial magistrate ordered that Omoto be remanded at Industrial Area Prison pending further proceedings.

The court scheduled a mention of the case for Monday, January 12, 2026, when it is expected to deliver a ruling on his bail application.

Meanwhile, the Directorate of Criminal Investigations (DCI) reiterated its commitment to combating fraud against the Social Health Authority and other public institutions. The agency said it will continue to pursue and hold accountable individuals involved in the misuse of public funds.

Members of the public have been urged to report suspected cases of fraud anonymously by calling the DCI toll-free line on 0800 722 203 or via WhatsApp on 0709 570 000 under the campaign #FichuaKwaDCI.