Hundreds of former National Hospital Insurance Fund (NHIF) employees absorbed into the Social Health Authority (SHA) are grappling with uncertainty as the agency faces a Sh9 billion funding shortfall and a court ruling blocking its internal recruitment strategy.
In a virtual address on Monday, SHA Chief Executive Officer Mercy Mwangangi revealed that the authority lacks the funds to facilitate early retirement for workers aged 55 and above.
“In reality, we do not have the requisite funds to send workers on early voluntary retirement, as that would cost more than Sh9 billion,” Mwangangi said.
Over 1,800 former NHIF employees were transitioned to SHA following its establishment as part of Kenya’s healthcare reforms. However, many, particularly those nearing or past retirement age, had hoped for retirement packages.
Compounding the issue, a significant number of SHA staff have been idle for nearly a year, lacking job descriptions, system access, or assigned tasks despite the agency’s shift to a digital platform.
Mwangangi announced that 215 employees who applied for redeployment will receive posting letters from the Public Service Commission. For the remaining 1,400 staff, job descriptions, passwords, and staff badges are expected to be issued soon to enable them to resume work.
Subordinate staff who did not request redeployment will be reassigned to other government offices over the next six months. While contract extensions have been offered, SHA has not confirmed how many employees will secure permanent roles.
Adding to SHA’s challenges, a recent Labour Relations Court ruling blocked the authority’s plan to reserve senior roles, such as directors, deputy directors, accountants, and county coordinators, for NHIF-inherited workers.
Justice Byram Ongaya, ruling on a case filed by Omar Abdile, declared the move discriminatory and in violation of public hiring laws, mandating that these positions be advertised and open to all qualified Kenyans.
Despite these setbacks, SHA is pressing forward with reforms. The authority recently launched the Lipa SHA Pole Pole initiative, a flexible payment model allowing Kenyans, particularly those in the informal sector, to pay insurance premiums in affordable instalments.
President William Ruto praised the initiative, calling it a “gamechanger” in advancing universal health coverage.
As SHA navigates its funding and staffing challenges, the affected workers and the public await clarity on the agency’s next steps to stabilise operations and fulfil its mandate.
