A Nairobi based medical director believed to be behind fraudulent claims amounting to over Ksh11 million from Social Health Authority (SHA) was on Monday arraigned in court following his arrest by officers from the Directorate of Criminal Investigations (DCI).
According to the DCI, the suspect, Michael Otieno Okumu, is the director of a medical facility located in Pipeline, Nairobi, and is accused of fraudulently siphoning money from SHA.
“Detectives from the Investigations Bureau (IB) at DCI Headquarters have today arraigned Mishael Otieno Okumu, the suspect behind fraudulent claims amounting to over Sh 11 million from the Social Health Authority (SHA),” DCI said in a statement.
Before his arraignment, Okumu was grilled by DCI officers, who established that his facility was involved in several irregular practices, including suspicious admission patterns, use of expired or unauthorized practitioner credentials, false patient admissions and fraudulent billing, among other illegalities that enabled the submission of the fraudulent claims.
Authorities say the activities were part of a scheme that enabled the suspect and the facility to fraudulently claim more than KSh11 million from the public health insurance system.
Following the investigations, Okumu, together with the facility identified as Salama Yard Medical Center Laboratory and Maternity Services, were charged with seven offences.
The charges include; “obtaining registration by false pretence contrary to section 320 of the Penal Code, making a false statement and falsification of documents contrary to section 48 (1) (c) of the SHA Act.
Okumu was also charged 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), and use of proceeds of crime contrary to section 4 (b), as read with section 16 (1) (b) of POCAMLA.
However, he pleaded not guilty to all the charges, and the court ordered that he be remanded at Capitol Hill Police Station pending the issuance of bail and bond terms on March 16, 2026.
