SHA rocked in new Sh0.6billion fresh scandal after FRC probe flag questionable payments

Investigations by The Informer Media Group can authoritatively reveal that the graft laden Social Health Authority (SHA) is rocked in a fresh Sh0.6billion questionable payments involving a total of forty-five hospitals profiled as possible conduits used to siphon public funds between October 2024 and July 2025, a probe report by the Financial Reporting Centre (FRC) now shows.

Shocking revelations that are inconsistent with normal operations of active facilities show that most of the hospitals had either dormant bank accounts prior to the remittances from Social Health Insurance Fund (SHIF) and Primary Health Care Fund (PHCF) or only received the monies from SHIF and PHCF depicting that they were used as special purpose vehicles to siphon the money.

Currently, Directorate of Criminal Investigations Banking Fraud Unit (BFIU) is investigating suspected directors of the said facilities over possible involvement in fraud, embezzlement of public funds and obtaining money by false pretences by receiving fictitious claims payments from the two funds.

Interestingly, same directors own multiple facilities domiciled in the same region majorly Mandera, Kisii, Bomet, Nairobi, Bungoma, Kakamega and Garissa.

According to a report by FRC, the facilities received a total of Sh558,641,801 from SHIF and PHCF between October 2024 and July 2025.

Among the facilities under probe include Chelymo Medical Center Limited located in Bomet which received a whooping Sh85million.

According to official records, Chelymo was registered on March 4, 2016 and licensed as a private Level 4 medical center in Bomet on September 14, 2026.

Investigations show the account operations were normal until February 4, 2025 when the facility started receiving funds exclusively from SHIF.

“Between February 4, 2025 and June 19, 2025, Chelymo Medical Center Limited received a total of Sh85,242,212.” The report shows in part.

And in Mandera county records show that Eagle View Medical Services Limited, incorporated in May 2025, Gallant Hospital incorporated in December 2024 and Dherkale Diagnostic Centre are all located in the same building.

The two facilities are situated at Gallenia Plaza along the Rhamu Mandera road and the directors are Adankulla Ahmed Hassan and Abdirahaman Ahmed Hassan.

However, Adankulla is the sole director of Dherkale.

Between March 26 and June 17, Eagle View received a total of Sh17.207million from both SHIF and PHCF, all unsupported while Dherkale received Sh5,502,987.95 between April and June 2025

“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.

“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.

When reached for comment, Adankulla warned our reporters to refrain from what he termed as “false allegations,” he said.

“Good afternoon. Thank you for the inquiry. For the official reply and follow-up on the matter, kindly drop an original copy of the letter to the designated facilities. We assure you that all the allegations will be substantiated. Refrain from false allegations,” Adankulla responded to our queries via WhatsApp text message.

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.

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 Sh2.25million 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 utilisation 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.

Mahnaz Nursing Home Limited in Mandera received a total of Sh12.6 million and the funds were utilised 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 Sh25.5 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 utilised through transfers to mobile numbers of the directors.

Nyamari and Oyaro transferred Sh3.245 million and Sh2.415million, 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.

A summary of some of the payments from the Social Health Insurance Fund (SHIF) and Primary Health Care Fund (PHCF) between October 2024 and July 2025.