Private Clinic Owner Charged Over Fake Medical Records and KSh 2.5 Million SHA Fraud Scheme

A private clinic owner from Kakamega County has been charged in court. He faces several serious criminal counts. The case was filed at the Milimani Law Courts. Authorities say it involves fraud against the Social Health Authority (SHA).

The accused is Josephat Ouma Omoto. He owns Zion Ahadi Mediclinic Limited. Prosecutors say he ran a scheme to defraud SHA. They claim it lasted six months. The case has raised fresh concerns about health insurance abuse.

According to the prosecution, Omoto altered medical records. The acts allegedly occurred between January and June 2025. He is accused of inserting patient details. The records falsely showed patients had consented to treatment. Others showed treatment had already been given. Investigators say the goal was to trigger SHA payments.

Omoto was charged under the Social Health Insurance Act. The offence attracts heavy penalties if proven.

Omoto and his clinic also face money laundering charges. Prosecutors say the clinic received KSh 2,591,125 from SHA. The funds allegedly passed through a Cooperative Bank account. The court was told the money was proceeds of crime. Investigators claim Omoto knew this or had reason to suspect it.

He also faces a separate charge. It accuses him of using proceeds of crime. Prosecutors say he spent the money knowingly. These charges fall under the Proceeds of Crime and Anti-Money Laundering Act.

The court heard of more allegations. Omoto is accused of submitting fake discharge summaries. The documents were allegedly sent to SHA officials. They were used to support false claims. Three counts relate to different patients. The submissions were made in January and March 2025.

Omoto appeared before the court under police custody. Prosecutors sought custodial orders. The court declined to rule immediately. Instead, it ordered a pre-bail report. Omoto was described as a father of three. He is also said to be diabetic.

The case will be mentioned again. The court will decide on bond and bail after reviewing the report.