Former acting SHA executive officer charged with Sh17.5 million fraud
From Right; Arthur Otula, Peter Abuna and Robert Ingasira before Milimani Law Courts on October 30, 2025 where they denied 10 counts, including conspiracy to defraud Social Health Authority of Sh17.5 million.
A former acting CEO of the Social Health Authority (SHA), Robert Ingasira and three others have been charged with defrauding the health insurance agency of Sh17.5 million through fraudulent medical claims submitted to the authority from a private clinic.
Mr Ingasira was arraigned alongside Arthur Otula, Rosemary Daraja and Peter Abuna for the alleged loss, which state prosecutors claim was processed through the Archprime Medical Clinic in Oyugis, Homa Bay County.
The four appeared before Milimani Chief Magistrate Lucas Onyina and denied seven counts, including conspiracy to defraud, falsification of health information, acquisition and use of proceeds of crime, and uttering false documents. These offences contravene the Penal Code, the Social Health Insurance Act, and the Proceeds of Crime and Anti-Money Laundering Act.
According to the charge sheet, the accused persons, jointly with others not before the court, are alleged to have conspired to defraud the SHA a total of Sh17,591,473 by submitting falsified medical claim documents purporting to be genuine between October 2024 and May 20, 2025.
The charges stem from an alleged fraudulent scheme in which false medical records of patients identified as Edna Amondi Dulo, Maureen Atieno, and Alice Akinyi Oburu were submitted to the CEO of SHA, purporting them to be genuine medical treatment claims.
According to the prosecution, the false claims were processed and payments made to Archprime Medical Clinic, which is owned by the first accused person, Arthur Otula, allegedly benefiting his co-accused persons, including the two former CEO's.
The prosecution, led by State Counsel Victor Owino, told the court that the funds were irregularly claimed and paid through Archprime Medical Clinic on account of fictitious patients and falsified medical records.
“The alleged fraud was executed through manipulation of health claim forms and medical records submitted to the SHA with intent to obtain benefits not lawfully due,” the court heard.
He further urged the court to consider the amount involved when setting bond terms, but did not oppose the release of the accused persons on bail.
“We are not opposed to bail, but we urge the court to take into account the public interest and the amount said to have been misappropriated from the public offers,” the prosecutor stated.
Magistrate Onyina released each of the four accused on a cash bail of Sh500,000 or an alternative bond of Sh800,000, with one contact person required as surety.
“The 1,2,3,5 shall be released on a cash bail of Sh500,000 each or a bond of Sh800,000, with one contact person as surety. They must attend court as required and not interfere with witnesses,” ruled the magistrate.
Meanwhile, the court issued a summons for former SHA CEO Elijah Wachira, who also faces charges in connection with the alleged scheme, after he failed to appear in court for plea taking.
He is required to present himself on November 11, 2025, to answer to the charges.
Defence lawyers led by Peter Wanyama, Timothy Okello and Ken Echesa pleaded for lenient bond terms, saying their clients were not flight risks.
“The accused persons have cooperated with investigators. They are not flight risks and are willing to abide by all conditions the court may set,” said Mr Okello.
Mr Echesa told the court that Ingasira, a career public servant who briefly served as the SHA Acting CEO, had “rendered valuable service to the institution” and should be considered for a free bond.
Daraja, a former nurse at the Archprime Medical Clinic in Homa Bay, pleaded for leniency, noting that she was a mother to a five-year-old child, unemployed, and unable to make ends meet.
“My client has a young child and was only minimally involved in the alleged offences. We urge the court to consider lenient terms,” said lawyer Okello.
The court directed the prosecution to supply all witness statements and documentary evidence to the defence within 21 days of the pre-trial hearing.
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