Suspect identified in Sh10 million fraud scheme at MTRH, officials say

Authorities have launched investigations into an alleged Sh10 million revenue diversion scheme at Moi Teaching and Referral Hospital (MTRH), in which an employee is suspected of manipulating the government’s eCitizen payment platform and the hospital’s internal billing systems.

The suspect, identified as Jane Wangari Wachira, is alleged to have colluded with an external accomplice, Khamisi Hussein Akida, to exploit gaps in the hospital’s billing and reconciliation processes between January 1, 2025 and February 9, 2026.

Preliminary findings indicate that patient bills were marked as cleared in the system, while payments were allegedly redirected to personal accounts instead of the hospital’s official PayBill number (222222).

Investigators believe irregular transactions were used to fraudulently update records and reflect bills as “PAID,” despite the hospital not receiving the funds.

Some patients were reportedly instructed to make payments through cash or private M-Pesa numbers rather than the hospital’s authorized payment channels.

The alleged irregularities were uncovered during an internal audit conducted on February 5, 2026, which revealed a discrepancy of approximately Sh10 million.

MTRH management has since escalated the matter to law enforcement agencies, with support from the Communications Authority of Kenya (CA) to trace digital transaction flows and establish the destination of the funds.

Investigators are also examining whether the suspected scheme is part of a broader unauthorized payment network affecting other government agencies integrated into the eCitizen platform.

Sources familiar with the probe say the scheme may have exploited weaknesses in access controls and reconciliation procedures. An insider with billing access could allegedly mark accounts as settled without actual confirmation of funds reaching official accounts.

Experts note that failure to conduct regular reconciliation between system-generated receipts and bank settlement accounts may have created opportunities for undetected financial leakage.

The incident raises fresh concerns about internal controls within public institutions using centralized digital payment systems. It also highlights the need for stronger safeguards, including stricter role-based access controls, enhanced audit trails, and automated reconciliation processes.

An internal audit at MTRH uncovered the fraud scheme involving manipulation of payments made through the government’s eCitizen platform.