Harun Liluma and Hospital Tycoons Charged in Massive SHA Scam
The Social Health Authority (SHA) transition is facing its most significant test yet as the Director of Public Prosecutions (DPP) and the DCI move to charge several hospital directors and a key regulator following a massive forensic audit. On February 25, 2026, DPP Renson Ingonga approved the prosecution of owners and directors from eight health facilities, alongside an official from the Kenya Medical Practitioners and Dentists Council (KMPDC), over a syndicate that allegedly siphoned billions from the national health insurer.
The crackdown follows a bombshell disclosure by Health Cabinet Secretary Aden Duale, who revealed that an audit unearthed a staggering KSh 11 billion lost to fraud between October 2024 and April 2025. The investigation exposed a sophisticated syndicate where outpatient visits were falsely converted into expensive inpatient claims, surgeries were billed but never performed, and “ghost patients” were used to siphon public funds. In one extreme case in Kwale, a single patient was recorded as having over 380 dependent children to maximize claims.
Several high-profile individuals and facilities are now in the crosshairs of the law. Directors of Danaba Care Hospital, including Mohammed Kulow Ali and Hassan Adan Ibrahim, face charges of conspiracy to defraud and operating an unlicensed facility. Similarly, proprietors of Mama Nerbeel Nursing Home and Adfaal Kids Care Medical Centre have been approved for prosecution on charges ranging from obtaining money by false pretenses to money laundering. Meanwhile, Harun Liluma, a KMPDC official, is accused of abuse of office for allegedly granting rogue clinics unauthorized access to the SHA digital portal.
Health CS Aden Duale has maintained a “scorched earth” policy against the fraudsters, emphasizing that the government has already closed over 1,000 non-compliant facilities and rejected billions in suspicious claims. During a recent legislative retreat in Naivasha, Duale noted that the era of “eating money meant for patients” is over. He highlighted that AI-powered fraud detection under the TaifaCare system is now monitoring transactions in real-time to block suspicious payouts before they leave the treasury.
While the specific names mentioned this week have drawn significant attention, the DCI has clarified that investigations are ongoing across several counties, including Nairobi, Homa Bay, Kilifi, Wajir, and Kajiado. The government’s goal is not only to prosecute offenders but to recover the stolen KSh 11 billion. For Duale, the successful prosecution of these directors is a vital litmus test to prove that the SHA will avoid the systemic rot that plagued its predecessor, the NHIF, and finally deliver on the promise of Universal Health Coverage.
