Most of the 45 hospital and medical centres under investigations for Social Health Authority (SHAH) fraudulent claims only received funds from the Social Health Insurance Fund (SHIF) and Primary Health Care Fund (PHCF), indicating they could have been used as special purpose vehicles to siphon funds. According to a report by the Financial Reporting Centre (FRC) seen by The Tribune, the facilities received a total of Sh558,641,801 from SHIF and PHCF between October 2024 and July 2025. The funds were utilised through transfers to accounts numbers operated by the directors, mobile money wallets operated by directors, multiple cash withdrawals and purchase of assets such as land and motor vehicles.
The Directorate of Criminal Investigations Banking Fraud Investigations Unit (BFIU) is investigating suspected fraud, embezzlement of public funds and obtaining money by false pretences by receiving fictitious claims payments from the two funds. Detectives noted that though facilities’ bank accounts were expected to have several credits from various individuals and entities, for example from other patients not covered under SHIF, this was not the case as they received multiple payments from SHIF and PHCF only.
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Dorman accounts
In some cases, accounts that were dormant began receiving huge funds that were unsupported. The report further states that some newly registered hospitals without any online presence were also receiving several funds. The probe also revealed that there were cases of multiple hospitals on the same physical address owned by the same director receiving elevated funds from SHIF. One such case was Eagle View Medical Services Limited, incorporated in May 2025, and the Gallant Hospital, incorporated in December 2024. The two facilities are situated at Gallenia Plaza along the Rhamu Mandera road and the directors are Adankulla Ahmed Hassan and Abdirahaman Ahmed Hassan. Between March 26 and June 17, Eagle View received a total of Sh17.207 million from both SHIF and PHCF, all unsupported.
“There were no credits from a variety of sources. The funds were utilised through cash withdrawals including Sh4.85 million that was transferred to Abdirahman Ahmed Hassan’s Equity Bank account,” the report states. The Gallant Hospital, a Level 3B medical institution in Mandera with a maximum in-patient of 30, received Sh5.5 million between March and June this year. “Since the account was opened, it only received funds from SHIF and PHCF. The funds were utilized through cash withdrawals and multiple M-Pesa transfers,” the report states.
Three hospitals – Filyne Chima Hospital Limited, Westlife Hospital Limited and Eastlife Hospital Limited – all owned by Filmre John Okeiga, received Sh12,205,730, Sh59,270,924 and Sh18,678,340, respectively. Filyne Chima, incorporated on March 17 this year as a private Level 4 hospital at Maraba Market in Kisii, operates a bank account at Cooperative Bank Kisii highway Branch opened on the same day it was incorporated. Since account opening the account only received two payments from one entity, SHIF, without other credits from other third parties.
Account opening
Okeiga’s Westlife Hospital, on the other hand, was incorporated on August 11, 2023. According to the account opening form of the hospital, the physical address is Eastlife Building Thika Road. However, the account opening form of the hospital indicates the physical address of the business as Nyabitunwa, Kenyatta Avenue Kisii. The funds were utilised in the following manner; cash withdrawal of Sh1.5 million; transfer of Sh9 million to a law firm for purchase of property; transfers of amounts totaling to Sh2.08 million for purchase of construction materials; transfers of Sh2.25 million to Cooperative Bank account described as birthday expenses, house cores and credit card payments; and Sh5.99 million and Sh2.99 million for purchase of a house and a car, respectively.
The Sh18 million payment to Eastlife Hospital Limited appeared to be a spike in funds usually received in the hospital account. The utilization of the funds included purchase of land and transfer to account operated by Boda Boda Stages Investment. This, according to the detectives, was not consistent with the operations of the hospital.
Subsequent transfers
Mahnaz Nursing Home Limited in Mandera received a total of Sh12.6 million and the funds were utilized through frequent cash withdrawals and subsequent transfers to personal bank accounts linked to the directors. “The account did not have any other activity such as salaries, payments to medical suppliers, indicating that it was being used as a special purpose vehicle to siphon funds from SHIF,” the report states.
Trenya Hospital Limited and BFN Hospital Limited, both owned by Oyaro Fredrick Nyabuto received a total of 25.5 million. Two other directors are listed as Brian Abuga and Nicholas Michieka Nyamari who are both employees of Hema Hospital in Kisii. The preliminary report indicates that they could be brief case companies registered to siphon public funds. The funds were majorly utilized through transfers to mobile numbers of the directors. Nyamari and Oyaro transferred Sh3.245 million and Sh2.415 million, respectively, to their personal bank accounts.
An employee of the Ministry of Health, Stella Moraa Misati, was listed as one of the two directors of Summit Medicare Chepilat Limited. The hospital received a total of Sh12,304,960 from SHIF.
