Former NHIF Chief Executive Richard Kerich and four others have been freed in a Sh116.9 million graft case due to lack of evidence.
In a judgement delivered on Friday, Milimani Anti-Corruption Magistrate Eunice Nyutu said the prosecution did not prove the charges levelled against the former officials.
"I find that the prosecution has failed to prove its case beyond reasonable doubt against the accused persons on all the counts that they have been charged with and I acquit them forthwith," Nyutu ruled.
They were acquitted under Section 210 of the Criminal Procedure Code.
The section states, "If at the close of the evidence in support of the charge, and after hearing such summing up, submission or argument as the prosecutor and the accused person or his advocate may wish to put forward, it appears to the court that a case is not made out against the accused person sufficiently to require him to make a defence, the court shall dismiss the case and shall forthwith acquit him".
He had been charged alongside NHIF officials David Chingi, Marwa Chacha and Meridian Medical Centre Directors Ndiba Wairiko and Peter Wambugu.
The five were taken to court in connection with the loss of millions meant for civil servants and disciplined forces medical schemes.
It was alleged that the NHIF officials entered into a contract with Meridian Centre to provide medical care.
Kerich and Chacha were separately accused of failing to comply with procurement law that calls for open tendering and that of abuse of office.
It was alleged that they conferred a benefit of Sh43 million to Meridian, sometime between December 21, 2011 and February 8, 2012, which was not proven.
On the other hand, Wambugu and Ndiba were accused of obtaining money by pretence while they knew that Meridian had no capacity to provide medical services to the civil servants.
The prosecution called 39 witnesses, but the magistrate said none of them linked the former CEO and his co-accused to the alleged conspiracy.