Suspect Arraigned Over Sh11 Million Social Health Authority Fraud

A suspect accused of fraudulently obtaining more than Sh11 million from the Social Health Authority (SHA) has been arraigned in court following investigations by detectives from the Directorate of Criminal Investigations.

The suspect, Mishael Otieno Okumu, was presented in court by detectives from the Investigations Bureau at the DCI headquarters on Monday over alleged fraudulent claims submitted to the national health insurer.

According to investigators, Okumu is the director of Salama Yard Medical Center Laboratory and Maternity Services, a facility in the Pipeline area of Nairobi that is alleged to have engaged in several irregular practices.

Detectives say the facility submitted fraudulent claims through suspicious patient admission patterns, the use of expired or unauthorised practitioner credentials, false patient admissions and inflated billing.

The suspect and the medical facility were charged with seven offences, including obtaining registration by false pretence contrary to Section 320 of the Penal Code, making false statements and falsification of documents under the SHA Act.

He also faces charges related to the acquisition and use of proceeds of crime under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).

Okumu pleaded not guilty to the charges. The court ordered that he be remanded at Capitol Hill Police Station pending the issuance of bail and bond terms on March 16, 2026, after a probation report is presented.

The DCI said investigations into the alleged SHA fraud are ongoing and warned that all individuals found culpable will face the full force of the law as authorities move to safeguard public resources.