Five charged with defrauding Social Health Authority of Sh17.5 million
The three, together with Archprime Medical Clinic, are further charged with acquiring and using proceeds of crime in violation of the Proceeds of Crime and Anti-Money Laundering Act, by receiving and utilising the fraudulent funds amounting to over Sh17 million.
Five people, among them senior officials of a private clinic in Oyugis, Homa Bay County, and staff of the Social Health Authority (SHA), have been charged in Nairobi with defrauding the Authority more than Sh17.5 million through falsified medical claims.
The accused — Arthur Otula, Rosemary Daraja, Peter Abuna, Robert Ingasira, and Archprime Medical Clinic Oyugis Ltd — appeared before a Nairobi court where they denied multiple charges, including conspiracy to defraud, falsification of health information, money laundering, uttering false documents, and misappropriation of public funds.
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According to the prosecution, the offences were committed between October 2024 and May 2025. The suspects, jointly with others yet to be arrested, are alleged to have conspired to siphon Sh17,591,473 from the SHA by filing falsified medical claims under the name of Archprime Medical Clinic in Oyugis, Homa Bay County.
In the main count, the prosecution accuses all the suspects of conspiracy to defraud, contrary to Section 317 of the Penal Code.
Otula, Daraja, and Abuna also face charges of falsifying health information under Section 48(1)(c) of the Social Health Insurance Act, for allegedly altering medical claim forms and documents to unlawfully obtain payments from SHA.
The three, together with Archprime Medical Clinic, are further charged with acquiring and using proceeds of crime in violation of the Proceeds of Crime and Anti-Money Laundering Act, by receiving and utilising the fraudulent funds amounting to over Sh17 million.
Daraja, a senior officer at Archprime Clinic, faces an additional five counts of uttering false documents contrary to the Penal Code.
The prosecution alleges that she submitted fake medical records for several patients, including Edna Amondi Dulo, Maureen Atieno, Alice Akinyi Oburu, Felix Omondi Omondi, and Andrew Okaka, to SHA, purporting them to be genuine treatment claims.
In a separate count, SHA officials Elijah Wachira and Robert Ingasira are accused of misappropriating Authority funds under Section 48(2) of the Social Health Insurance Act, by allegedly mishandling the Sh17.5 million in question.
The accused pleaded not guilty to the ten charges before Milimani Chief Magistrate Lucas Onyina and were released on cash bail of Sh500,000 each.
The case will be mentioned on November 11.
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