SHA Fraud Network Exposed as Key Suspect Denies Charges, Court Issues Arrest Warrants.
A major fraud case involving millions of shillings allegedly lost through irregular claims from the Social Health Authority (SHA) has unfolded at the Milimani Law Courts, with one of the key suspects pleading not guilty as the court issued warrants of arrest for several co-accused persons who failed to appear.
The criminal proceedings, filed on February 27, 2026, outline what prosecutors describe as a coordinated scheme involving fraudulent registration of medical facilities, unauthorized access to government systems and unlawful claims for public funds amounting to over Ksh 20 million.
At the centre of the case is Harun Liluma, who was presented before the court and denied all charges facing him across the various cases.
He is accused of unlawfully accessing and manipulating the Kenya Medical Practitioners and Dentists Council’s digital system (rHRIS), allegedly enabling the irregular registration of medical facilities which subsequently benefited from payments from the Social Health Authority.
The court granted Liluma a cash bail of a total of Ksh 4 million or an alternative bond of Ksh 8 million.
He was ordered to remain in custody at Industrial Area Prison pending the fulfilment of the bail terms.
In the same proceedings, the court issued warrants of arrest against all other accused persons who were not present in court.
According to the charge sheets, the alleged offences were committed between January and August 2025, with prosecutors claiming that the accused persons conspired to fraudulently secure registration of several health facilities in order to access funds from the national health scheme.
One of the cases involves Dimtu Nursing Home Limited, where the directors are accused of conspiring to fraudulently obtain registration, leading to payments amounting to Ksh 6,103,391.91. The charges also include operating a health facility without a valid licence and laundering proceeds of crime.
In another case, Adfaal Kids Care Medical Centre Limited and its directors face charges of conspiracy to defraud and operating an unlicensed facility, with allegations that they obtained 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 official systems.
The case involving Danaba Care Hospital Limited includes allegations that the accused fraudulently obtained Ksh 7,593,485.10 by falsely presenting the facility as an approved healthcare provider. They also face additional charges of money laundering and operating without the required licence.
Similarly, officials linked to Kamsihawa Medical Centre are accused of conspiring to defraud and obtaining Ksh 5,608,819.35 through false representations, alongside charges of operating without a licence and benefiting from irregular registration.
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 in various aspects of the scheme, including fraudulent registration, operating unlicensed facilities and obtaining funds from the Social Health Authority through false pretences.
Across all the cases, Liluma is consistently accused of unauthorized access to the rHRIS system, altering records and abusing his position as a public officer to facilitate the registration of the facilities, actions which prosecutors say resulted in significant loss of public funds.
Investigators allege that the scheme relied on manipulation of official systems to bypass regulatory safeguards, allowing unlicensed or improperly registered facilities to receive payments from the national health programme.
The total amount in dispute across the consolidated cases stands at Ksh 20,579,665.46, highlighting the scale of the alleged fraud.
The court further noted that several witnesses are expected to testify, including individuals involved in the registration and payment processes.
The matter is scheduled for pretrial on March 12, 2026, as investigations continue and efforts to apprehend the remaining suspects intensify.
