Josephat Ouma Omoto, the Director of Zion Ahadi Hospital located in Kakamega County, has been taken to court over allegations of fraud involving public health funds.
He was arraigned before the Milimani Law Courts in Nairobi where he faced several serious charges linked to an alleged scheme that targeted the Social Health Authority, commonly known as SHA.
The case has attracted attention because it involves a senior hospital official and a large sum of money meant to support healthcare services.
According to prosecutors, Omoto is accused of planning and executing a scheme that allowed him to unlawfully obtain money from SHA.
It is alleged that through false representations and manipulated medical documents, he managed to receive Sh2.5 million from the authority.
The prosecution claims that the documents submitted to SHA contained misleading information that did not reflect genuine medical services provided to patients.
These claims were allegedly processed and paid, leading to a loss of public funds.
The charges against Omoto are multiple and touch on different laws. One of the main charges is obtaining money by false pretences, which is an offence under Section 313 of the Penal Code.
This charge relates to situations where someone deliberately lies or misleads another party in order to gain financially.
In this case, the prosecution argues that Omoto knowingly presented false information to SHA to receive money he was not entitled to.
He also faces charges under the Social Health Authority Act. Specifically, he is accused of falsifying health documents, an offence under Section 48(5) of the Act.
These documents are important because SHA relies on them to verify claims made by health facilities before releasing funds.
Any manipulation of such records undermines trust in the health system and affects the use of public resources.
In addition, Omoto has been charged with acquiring and using proceeds of crime. These charges fall under Section 4(a) and (b) as read with Section 16(1) of the Proceeds of Crime and Anti-Money Laundering Act.
This law is meant to prevent people from benefiting from money obtained through illegal activities and to ensure such funds are traced and recovered where possible.
When he appeared in court, Omoto denied all the charges brought against him. He maintained that he was not involved in any fraudulent activity.
After considering the matter, the court ordered that he be remanded at Industrial Area Prison as he awaits further directions. The judge did not grant bail immediately and instead scheduled the case for mention on Monday, January 12, 2026.
On that day, the court is expected to give a ruling on Omoto’s bail application.
Meanwhile, the Directorate of Criminal Investigations has reiterated its commitment to fighting fraud, especially cases that target public institutions like the Social Health Authority.
The DCI stated that it will continue to investigate such crimes and ensure that anyone found responsible for misusing public funds is held accountable under the law.
The case is expected to continue as investigations and court proceedings move forward.
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