Former National Hospital Insurance Fund (NHIF) Managing Director Richard Kerich and two other managers have been freed after prosecution failed to prove fraud charges against them.
Releasing alongside Fadhili Marwa Chacha and David Chingi, Senior Principal Magistrate Martha Mutuku said the prosecution had failed to prove conspiracy charges against the three persons.
She said there was no audit to prove any loss of money.
The magistrates also dismissed charges of failing to comply with procurement laws.
According to the magistrate, the documents availed in court showed that the contract was legal and that there was nothing to show that the three altered the contract or amended it in any way.
She further said none of the three persons participated in the tender process or played any role in the process.
The three were charged in 2013 with conspiring to defraud the fund of Sh96.5 million through a contract with Clinix Healthcare Limited to provide healthcare for civil servants and disciplined forces between January and March 2012.
They were also charged with abuse of office and failing to comply with procurement laws.
The three former managers were charged together with two directors of Clinix Healthcare Limited Toddy Madahana and Anthony Kalathir Chacko.
Clinix and its directors were also acquitted after the court found that no member of NHIF testified in court that the facility did not have the capacity as alleged.