The Directorate of Criminal Investigations (DCI) detectives yesterday arrested Harun Liluma, a once-trusted employee of the Kenya Medical Practitioners and Dentists Council (KMPDC). Liluma, who had already been interdicted amid swirling allegations of graft, now stands at the epicenter of a burgeoning scandal that has siphoned millions from the Social Health Authority (SHA)—the government’s flagship health insurer designed to replace the scandal-plagued National Hospital Insurance Fund (NHIF).
Liluma’s detention, announced by the DCI in a terse statement on X (formerly Twitter), marks the first high-profile arrest in a crackdown that threatens to ensnare over 20 individuals and eight private health facilities accused of orchestrating a sophisticated fraud scheme. Set for arraignment today at the Milimani Law Courts, the interdicted KMPDC staffer faces a trio of grave charges: conspiracy to defraud, abuse of office, and computer fraud—offenses greenlit by the Office of the Director of Public Prosecutions (ODPP) after months of “painstaking investigations.” But as the gavel looms, questions mount: How did a mid-level bureaucrat allegedly unlock the gates to one of the largest heists in Kenya’s nascent health insurance system? And what does this say about the vulnerabilities in a program meant to shield millions from medical bankruptcy?
At the heart of the probe lies Liluma’s purported exploitation of his position at the KMPDC, the regulatory body tasked with licensing medical practitioners and facilities to ensure public safety. Investigators allege that Liluma abused his access to sensitive databases, granting unauthorized entry to computer systems to fast-track irregular registrations for fictitious or unlicensed health facilities. These “ghost” entities, prosecutors claim, then flooded the SHA with bogus claims—fake ICU admissions, phantom drug bills, and inflated procedures—pocketing millions in reimbursements before vanishing into the ether.
“Liluma’s actions facilitated a chain of deceit that not only drained public coffers but exposed vulnerable patients to substandard or nonexistent care,” said a source close to the investigation, speaking on condition of anonymity due to the case’s sensitivity. The ODPP’s directive, issued on February 25, paints Liluma as a linchpin: without his alleged digital sleight-of-hand, the implicated hospitals could never have infiltrated SHA’s payment portal.
This isn’t Liluma’s first brush with scrutiny. Social media sleuths had flagged him days earlier, linking him to at least eight fraud dockets involving unauthorized system breaches. His interdiction by KMPDC in recent weeks was a mere prelude; now, with ODPP backing, he’s poised to become the face of institutional rot in Kenya’s health oversight apparatus.
Liluma didn’t operate in isolation. The ODPP’s prosecutorial hammer falls on a network of private health providers accused of colluding to exploit SHA’s rollout glitches. Eight facilities and their directors are slated for charges ranging from obtaining money by false pretenses to operating unlicensed clinics in blatant defiance of the Medical Practitioners and Dentists Act.
Among the accused:
– Danaba Care Hospital: Directors Mohammed Kulow Ali and Hassan Adan Ibrahim, charged with conspiracy to defraud and running an unlicensed outfit.
– Adfaal Kids Care Medical Centre: Directors Mohamed Mohamud Sheikh, Ali Ahmed Adan, and Mohamednoor Ismael Omar, facing similar counts alongside acquisition of crime proceeds.
– Kamishawa Medical Centre: Former directors Kamsia Hassan Kala and Hawa Alinoor Malo, accused of false pretenses to siphon funds.
– Kaafi Nursing Home: Proprietors Ibrahim Rashid and Ahmed Mohamud Adan, hit with unlicensed operation charges.
– Mama Nerbeel Nursing Home: Proprietors Naima Sheikh Ali, Abdihakim Sheikh Ali, and Adan Abdikhaliq Abdullah.
– Alati Nursing Home: Owner Ali Edin Ibrahim.
– Julun Nursing Home: Proprietor Ismail Omar Mohammed.
– Dimtu Nursing Home Limited: Director Yussuf Siat Jelle, singled out for fraudulent enrollment and payments.
These entities, many clustered in Nairobi’s underserved Eastlands, allegedly raked in “millions of shillings” through sham registrations enabled by Liluma’s access. One auditor’s report, leaked to this desk, estimates their collective haul at over Sh50 million—a drop in the ocean compared to SHA’s systemic bleed.
Liluma’s case is but a thread in a tapestry of theft that has hemorrhaged Sh11 billion from SHA between October 2024 and April 2025 alone. Launched with fanfare as the bedrock of President William Ruto’s Universal Health Coverage (UHC) agenda, SHA inherited NHIF’s baggage: a Sh102 billion “anti-fraud” IT system procured without tender, owned by a private consortium (Safaricom, Apeiro, Konvergenz), and riddled with non-compete clauses that lock Kenya into decade-long payments.
The Ministry of Health has since forwarded 1,188 fraud dossiers to DCI, citing rampant abuse: patients “admitted” to multiple hospitals simultaneously, ghost beneficiaries, and facilities billing for services never rendered. Health Cabinet Secretary Aden Duale vowed recoveries, but critics decry a system “designed for graft,” with annual deductions for the unemployed pricing out millions from day one. As one X user quipped amid the uproar: “SHA was sold as the cure for NHIF corruption. Instead, it’s a masterclass in institutionalized graft.”
The scandal has ignited fury among medical professionals. The Kenya Medical Association (KMA) and Kenya Dental Association (KDA) yesterday demanded an Ethics and Anti-Corruption Commission (EACC) probe into KMPDC’s underbelly, decrying “bribery, irregular licensing, and unverified qualifications” that have flooded SHA with fakes. “Corruption erodes public confidence and compromises patient safety,” their joint statement thundered, urging a forensic audit of registrations and SHA claims.
KMPDC’s board, already reeling from interdictions, faces accusations of complicity. “If proven, these acts indicate deliberate attempts to defraud the SHA and the public,” the associations warned, calling for Ministry of Health intervention to restore regulatory integrity.
DPP Renson Ingonga, in a February 25 press release, struck a resolute tone: “Upon review, the DPP has directed charges against the following persons and institutions.” DCI echoed the sentiment on X: “Justice for the SHA fraud cases is non-negotiable.”
As Liluma’s court date dawns, the SHA saga underscores a perilous truth: Kenya’s health reforms, noble in intent, are undermined by insiders who treat public trust as a personal ATM. With over 15 more hospital proprietors in the crosshairs and EACC whispers growing louder, this could be the tipping point—or just another chapter in a litany of unlearned lessons.
For ordinary Kenyans, already grappling with delayed claims and denied care, the stakes are existential. Will Liluma’s fall dismantle the syndicate, or is it merely the visible tip of a deeper, systemic iceberg? As DCI vows “comprehensive forensic tracing and multi-agency collaboration,” one thing is clear: in the race for UHC, fraud isn’t just stealing money—it’s stealing hope.
