Former Social Health Authority CEO cleared in KES 17 million fraud

A former Social Health Authority (SHA) boss Elijah Wachira has been cleared of any wrongdoing in a KES 17.5 million fraud case by the Anti-Corruption Court.

Mr Wachira was discharged by principal magistrate Daisy Mutai following an application by the Director of Public Prosecutions (DPP) who reviewed the prosecution file.

Ms Mutai was moved October 6, 2026, by the DPP to terminate the case against Mr Wachira whom he said had long left SHA when the alleged fraud was allegedly committed.

The magistrate heard that the DPP was petitioned by the lawyers representing Mr Wachira to review the decision to file criminal charges against him asserting he was not criminally liable since he left the health insurer before the alleged fraud.

The magistrate heard that the DPP reviewed the file and “confirmed the fraud claims were lodged after his (Wachira's) departure from the institution.”

On December 16, 2025, Wachira Advocates, Manyonge Wanyama & Associates wrote to the Director of Public Prosecutions Renson Ingonga seeking a review of the case under Article 157 (6) of the Constitution.

Vide this section the DPP is vested with authority to discontinue criminal proceedings against someone before judgment, subject to approval by the trial court.

The DPP is also mandated to make a decision to charge anybody without consultation.

The lawyer had pointed out to the DPP that the transactions occurred after Mr Wachira had left SHA.

They also stated that Mr Wachira had not been adversely mentioned anywhere in the 2,235 pages of documents submitted by the investigating officer.

Mr Wachira was appointed as CEO of the defunct National Hospital Insurance Fund (NHIF) on October 2023 following a competitive recruitment process.

He served as acting CEO of SHA during the transition from NHIF to the new Social Health Insurance Fund (SHIF) on October 1, 2024. He previously served as Managing Director of CIC General Insurance. 

The DPP therefore urged the court to discontinue the case against Mr Wachira and Robert Ingasira under Section 87(a) of the Criminal Procedure Code.

In a brief ruling the magistrate withdrew the case against the two under Section 87 (a) of the Criminal Procedure Code (CPC).

She also directed that the cash bail deposited in court by the two accused persons be reimbursed to the respective depositors.

Wachira had been charged alongside other suspects in Nairobi Magistrates Court Criminal Case No. E559 of 2025, in which Arthur Otula, Rosemary Daraja, Peter Abuka, Ingasira and Archiprime Medical Clinic Oyugis.

The six were charged with conspiracy to defraud.

The charge states on diverse dates between October 2024 and May 2025 at an unknown place within Kenya with intend to defraud jointly with others not before court conspired to defraud SHA KES 17,591,473.

Mr Wachira and Ingarisa were discharged in this charged and also in another where they had been charged with misappropriation of public funds amounting to KES 17,591,473 at the SHA headquarters in Nairobi.

Following the termination of the case the two walked to their freedom.