By Andrew Kariuki
A shocking fraud case involving millions of shillings allegedly siphoned from the Social Health Authority (SHA) has taken a new turn at the Milimani Law Courts, after the key suspects denied multiple charges while the court issued arrest warrants for several co-accused persons who failed to appear.
The criminal proceedings, covering multiple cases filed on February 27, 2026, expose what prosecutors describe as a coordinated scheme involving fraudulent registration of medical facilities, manipulation of government systems, and unlawful claims for payments running into tens of millions of shillings.
At the centre of the case is Harun Liluma, who appeared before the court and pleaded not guilty to all counts leveled against him across the cases.
He is accused of playing a critical role in unlawfully accessing and manipulating the Kenya Medical Practitioners and Dentists Council’s digital system (rHRIS), enabling unqualified facilities to be registered and subsequently benefit from public funds.
The court granted Liluma a ksh500,000 cash bail or an alternative one million bond in each case which ultimately tallies to a cash bail of Ksh 4 million or an alternative bond of Ksh 8 million.
Pending the fulfillment of the bail terms, he was ordered to be remanded at Industrial Area Prison.
In the same proceedings, the court issued warrants of arrest against all other accused persons who were not present in court.
The cases, filed under several criminal case numbers, detail a large web of alleged fraudulent dealings by different medical facilities and individuals.
Prosecutors allege that between January and August 2025, the accused persons conspired to irregularly secure registration of health facilities with the aim of accessing funds from the Social Health Authority.
Among the entities named is Dimtu Nursing Home Limited, whose directors are accused of conspiring to fraudulently obtain registration, leading to payments amounting to Ksh 6,103,391.91.
In the same case, one of the directors is also charged with operating the facility without a valid license and laundering proceeds of crime.
In a separate case, Adfaal Kids Care Medical Centre Limited and its directors face charges of conspiracy to defraud and operating without proper licensing, with allegations that they received Ksh 1,273,969.10 through irregular means.
The prosecution further claims that the facility’s registration was facilitated through unauthorized access and manipulation of government systems.
Another case involves Danaba Care Hospital Limited, where the accused are alleged to have fraudulently obtained Ksh 7,593,485.10 by falsely presenting the facility as an approved healthcare provider.
They also face charges of money laundering and operating an unlicensed medical institution.
Similarly, Kamsihawa Medical Centre and its officials are accused of fraudulently obtaining Ksh 5,608,819.35 through false representations, alongside charges of operating without a license and conspiracy to defraud.
The other individuals named in the cases include Yussuf Siat Jelle, Mohamed Mohamud Sheik, Ali Ahmed Adan, Mohamednoor Ismael Omar, Mohammed Kulow Ali, Hassan Adan Ibrahim, Kamsia Hassan Kala and Hawa Alinoor Malo, all of whom are alleged to have participated, at different levels, in a coordinated scheme to fraudulently procure registration of medical facilities, operate without valid licences and obtain funds from the Social Health Authority through false pretences.
Across all cases, Harun Liluma is consistently accused of unauthorized access to the rHRIS system, altering records and abusing his position as a public officer to facilitate the fraudulent registration of the facilities, actions which prosecutors say resulted in significant financial loss to the public.
Investigators allege that their actions, carried out on various dates in 2025, contributed to the irregular acquisition of millions of shillings in public funds, forming part of a broader network under scrutiny in the ongoing criminal proceedings.
The prosecution’s case also further indicates that the alleged scheme relied on manipulation of official systems to bypass regulatory safeguards, allowing unlicensed or improperly registered facilities to receive payments from the national health scheme.
The total amount in dispute across the consolidated cases stands at Ksh 20,579,665.46, highlighting the sheer scale of the alleged fraud.
The court also noted that several witnesses are expected to testify in the matter, including government officials and other individuals linked to the registration and payment processes.
With one suspect now in custody and others facing arrest, the case is expected to test the integrity of regulatory systems within the healthcare sector and raise broader questions about oversight of public funds.
The matter will be mentioned on March 12, 2026, for pretrial directions as investigations and efforts to apprehend the remaining suspects continue.
