A hospital director from Kakamega County has been charged in Nairobi over an alleged Sh2.5 million fraud targeting the Social Health Authority (SHA).
Josephat Ouma Omoto, the Director of Zion Ahadi Hospital, was arraigned at the Milimani Law Courts following investigations by the Directorate of Criminal Investigations (DCI).
Investigators allege that he submitted manipulated health records and false representations to SHA, leading to the fraudulent payout of Sh2.5 million.
The court heard that the alleged actions amount to obtaining money by false pretences, contrary to Section 313 of the Penal Code.
Omoto is also charged under Section 48(5) of the SHA Act for falsifying health-related documents.
In addition, he faces charges of acquiring and using proceeds of crime under Sections 4(a) and (b) as read with Section 16(1) of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).
Omoto denied all the charges when he appeared before the court.
The presiding judge ordered that he be remanded at Industrial Area Prison as he awaits a ruling on his bail application.
The case will be mentioned on Monday, January 12, 2026, when the court is expected to give directions on bond and bail terms.
In a statement, the DCI reaffirmed its commitment to protecting public funds, warning that individuals involved in defrauding SHA and other state institutions will be pursued and held accountable.
The case adds to growing scrutiny over fraud within Kenya’s health financing system.