Five Accused in Ksh17.5 Million SHA Scam Plead Not Guilty, Released on Bail
The court granted the accused bail and directed them to abstain from contacting any witnesses or tampering with investigations that are still underway.
The case was scheduled for mention later in November for confirmation of compliance and setting a hearing date. Photo/courtesy
By Ruth Sang
Five people, including senior officials from a private health facility in Oyugis and employees of the Social Health Authority, have been charged before a Nairobi court for allegedly defrauding the Authority over Ksh17.5 million through fraudulent medical claims.
The accused, Arthur Otula, Rosemary Daraja, Peter Abuna, Robert Ingasira, and Archprime Medical Clinic Oyugis Ltd, appeared before a magistrate and faced ten counts of conspiracy to defraud, falsification of medical records, acquisition and use of proceeds of crime, uttering of false documents, and misappropriation of public funds. All the accused pleaded not guilty.
The prosecution alleged that the accused, jointly with others still at large, conspired to defraud SHA Ksh17,591,473 between October 2024 and May 2025 by submitting fake treatment claims to the Authority through Archprime Medical Clinic, situated in Oyugis, Homa Bay County.
In count one, all the accused were charged with conspiracy to defraud, an offence under Section 317 of the Penal Code.
Secondly, Otula, Daraja, and Abuna were charged with making false statements in health information, contrary to Section 48(1)(c) of the Social Health Insurance Act, by means of falsifying medical documents with the intent to claim benefits to which patients were not entitled.
The third and fourth counts alleged that Otula, Daraja, and Archprime Medical Clinic had unlawfully acquired and used proceeds of crime, contrary to the Proceeds of Crime and Anti-Money Laundering Act, by channeling and spending the illicit SHA funds amounting to over Ksh17 million.
Rosemary Daraja was also charged with five other counts of uttering false documents, contrary to Sections 349 and 353 of the Penal Code. According to the prosecution, she issued fake medical records for various patients — Edna Amondi Dulo, Maureen Atieno, Alice Akinyi Oburu, Felix Omondi Omondi, and Andrew Okaka — purporting that they had been treated at Archprime Clinic while knowing they were forged documents.
The final charge was under Section 48(2) of the Social Health Insurance Act, wherein Elijah Wachira and Robert Ingasira, officials at SHA, were accused of misappropriating funds for failing to handle public money as required. The court granted the accused bail and directed them to abstain from contacting any witnesses or tampering with investigations that are still underway. The case was scheduled for mention later in November for confirmation of compliance and setting a hearing date.
About Author
