A director of a Nairobi-based health facility has been arraigned in court over allegations of fraud involving more than Sh11 million from the Social Health Authority (SHA), according to the Directorate of Criminal Investigations (DCI).
The suspect, identified as Mishael Otieno Okumu, was presented before court by detectives from the Investigations Bureau at DCI headquarters following investigations into suspected fraudulent medical claims linked to a health facility operating in Nairobi’s Pipeline area.
According to investigators, Okumu is the director of Salama Yard Medical Center Laboratory and Maternity Services, which authorities say was involved in several irregular practices that enabled the submission of fraudulent claims to the national health scheme.
Detectives told the court that investigations uncovered suspicious patient admission patterns at the facility, alongside the use of expired or unauthorized medical practitioner credentials.
Authorities also cited cases of false patient admissions and fraudulent billing practices as part of the scheme used to claim funds from the Social Health Authority.
The prosecution stated that the alleged practices allowed the facility to submit fraudulent claims amounting to more than Sh11 million.
Okumu and the medical facility face seven criminal charges. These include obtaining registration by false pretence contrary to Section 320 of the Penal Code, making false statements and falsification of documents under Section 48(1)(c) of the Social Health Authority Act.
He was also charged with acquisition of proceeds of crime and the use of proceeds of crime, offences linked to provisions under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).
The suspect pleaded not guilty to all charges when he appeared in court.
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 the court receives a probation report.
The DCI said investigations into the alleged fraud are ongoing, adding that authorities remain committed to pursuing accountability and protecting public resources within the Social Health Authority system.