Hospital Director Charged Over Sh2.5mn SHA Fraud

NAIROBI, Kenya, Jan 10 — The Director of Zion Ahadi Hospital in Kakamega County, Josephat Ouma Omoto, has been charged at the Milimani Law Courts over an alleged Sh2.5 million fraud targeting the Social Health Authority (SHA).

Prosecutors told the court that Omoto orchestrated a fraudulent scheme designed to unlawfully siphon public funds by submitting fabricated medical claims and falsified health documents to the authority. The alleged offences resulted in the wrongful payment of Sh2.5 million from SHA.

Omoto faces several charges, including obtaining money by false pretences contrary to Section 313 of the Penal Code, as well as falsification of health records under Section 48(5) of the Social Health Authority Act.

He is also charged with acquiring and using proceeds of crime, an offence under 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 before the court. The magistrate ordered that he be remanded at Industrial Area Prison pending the determination of his bail application.

The case will be mentioned on Monday, January 12, 2026, when the court is expected to issue a ruling on bail.

The Directorate of Criminal Investigations (DCI) said it remains steadfast in its crackdown on fraud targeting the Social Health Authority and other public institutions, warning that individuals involved in the theft of public funds will be relentlessly pursued and held accountable.

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