A Kakamega-based private hospital owner has been brought before the Milimani Law Courts to answer to a string of criminal charges linked to alleged insurance fraud and money laundering involving the Social Health Authority (SHA).
Josephat Ouma Omoto, who runs Zion Ahadi Mediclinic Limited, is accused of manipulating medical records to unlawfully claim funds from the national health insurer. Prosecutors told the court that between January and June 2025, Omoto deliberately altered patient records, falsely indicating that individuals had received or approved medical services in order to secure payments from SHA.
The court heard that the alleged scheme enabled the facility to receive more than Ksh 2.5 million, which investigators say was paid through a Cooperative Bank account linked to the clinic. Omoto and the medical facility now face charges under the Proceeds of Crime and Anti-Money Laundering Act, with prosecutors asserting that the funds were acquired and used despite the accused knowing, or having reason to know, that they were illegally obtained.
In addition, Omoto is accused of knowingly spending the alleged proceeds of crime, further compounding the charges against him.
The prosecution has also levelled multiple counts of presenting false documents, alleging that Omoto submitted fabricated inpatient discharge summaries to SHA’s chief executive officer to facilitate fraudulent claims. One of the documents cited relates to a discharge summary bearing the name Florence Rachael Atero, allegedly submitted in mid-March 2025 under a specific claim reference.
The case forms part of broader investigations into suspected abuse of the national health insurance system, as authorities intensify efforts to clamp down on fraudulent claims within the healthcare sector.
