A suspect accused of fraudulently claiming over Sh11 million from the Social Health Authority (SHA) on Monday pleaded not guilty in a Nairobi court.
Mishael Otieno Okumu, who was arraigned by detectives from the Directorate of Criminal Investigations (DCI), faces multiple charges including fraud, falsification of documents, and acquisition of proceeds of crime linked to the alleged scheme.
The court remanded him at Capitol Hill Police Station pending the issuance of bail and bond terms on March 16 after a probation report is filed.
According to investigators from the Investigations Bureau (IB) at DCI Headquarters, Okumu is suspected to be the key figure behind fraudulent claims amounting to more than Sh11 million submitted to the national health insurance scheme.
Investigations established that the suspect is the director of a medical facility in the Pipeline area of Nairobi County identified as Salama Yard Medical Center Laboratory and Maternity Services.
Detectives say the facility was involved in several irregular practices that enabled the submission of the fraudulent claims.
“Investigations established that the suspect is the director of a facility located in the Pipeline area of Nairobi County that was involved in several irregular practices, including suspicious admission patterns, use of expired or unauthorized practitioner credentials, false patient admissions and fraudulent billing,” investigators said.
Authorities added that the alleged irregularities allowed the facility to submit fraudulent reimbursement claims to the Social Health Authority.
Okumu and the medical facility were jointly charged with seven offences under various laws, including obtaining registration by false pretence contrary to Section 320 of the Penal Code.
He also faces charges of making a false statement and falsification of documents contrary to Section 48(1)(c) of the SHA Act.
In addition, prosecutors charged him with acquisition of proceeds of crime contrary to Section 4(a) as read with Section 16(1)(b) of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), as well as use of proceeds of crime contrary to Section 4(b) of the same law.
The suspect denied all the charges when he appeared in court.
“Mishael pleaded not guilty and was remanded at Capitol Hill police station pending the issuance of bail and bond terms on 16 March 2026, after the presentation of a probation report,” the DCI said.
The Directorate of Criminal Investigations said it remains committed to pursuing accountability in the ongoing probe into suspected fraud involving the Social Health Authority.
“The Directorate of Criminal Investigations remains unwavering in its pursuit of justice in the Social Health Authority fraud investigations and is committed to ensuring accountability and safeguarding public resources,” the agency stated.
Investigations are ongoing, with authorities indicating that additional suspects could face charges as the probe continues.