Kenyan health system ravaged by fraud as 'ghost treatments' and fake facilities drain public funds

The Milimani Law Courts issued arrest warrants after the suspects failed to appear for plea taking despite being summoned, according to the Director of Public Prosecutions (DPP). Prosecution counsel Joyce Olajo told the court the suspects ignored notices requiring them to present themselves.

Prosecutors allege the network fraudulently registered some medical facilities and then submitted claims for procedures that were never performed, draining about KSh 28 million  (approx. US$217,000) from public health funds.

The DPP has also recommended criminal charges against eight facilities named in the case: Kaafi Nursing Home, Dimtu Nursing Limited, Mama Nerbeel Nursing Home, Kamsihawa Medical Centre, Adfeel Kids Care Medical Centre Limited, Julun Nursing Home, Danaba Care Hospital Limited and Alati Nursing Home.

The approved charges include conspiracy to defraud, operating unlicensed health facilities, acquisition and use of proceeds of crime, unauthorised access to computer systems, computer fraud, obtaining money by false pretence and abuse of office. Investigators believe the scheme relied on fake patient claims, questionable billing practices and access to digital health systems.

In a related case arising from the same probe, Harun Liluma has already been charged and pleaded not guilty. He was released on a KSh 1 million (approx. US$7,700 - 7,800) bond with two sureties or KSh 500,000 (between US$3,850 - 3,900) cash bail, and the matter is due back in court on March 12, 2026, as authorities continue tracing the remaining suspects over alleged offences committed between January 30 and August 25, 2025.