No gratuity for contract UHC workers transitioning to permanent terms, PS Oluga declares

Universal Health Coverage (UHC) health workers transitioning from contract to permanent and pensionable (PnP) terms will not receive gratuity, the Ministry of Health (MoH) has clarified, citing legal provisions that prohibit entitlement to both pension and gratuity simultaneously.

The Principal Secretary for Medical Services, Dr Ouma Oluga, said the transition constitutes continued service rather than termination, which is the legal basis for gratuity payouts.

According to Dr Oluga, the law stipulates that gratuity is payable “where an employee’s contract is terminated after completion of a specified period,” and not when one is simply moved to new terms of service.

Dr Oluga explained that if the government were to issue gratuity to transitioning UHC workers, it would essentially be severing ties with them and seeking new hires through fresh advertisements.

However, in cases where the same workers are being transitioned to permanent and pensionable terms, he added, there is no legal basis to issue a gratuity payout.

"If we pay you a gratuity, what you are saying is that we are saying goodbye to you. So that means we will take our money, do advertisements, and employ any other Kenyan out there. If you are the same person, we are transitioning from a contract to permanent and pensionable terms, there is no gratuity language," Oluga said in an interview with NTV.

The PS emphasised that the original three-year UHC contracts did not contain explicit gratuity provisions, and subsequent extensions did not alter this. “Gratuity is only paid when there is a separation. You cannot receive both gratuity and pension, it’s one or the other,” he said.

His remarks come amid growing concern among UHC staff, especially after a parliamentary committee revealed that 8,550 workers’ contracts are expected to end in May 2026. Many had anticipated a lump-sum gratuity payment at the end of their term.

Many had expected a lump-sum gratuity payment at the end of their contract period, but the ministry has instead budgeted Sh6.2 billion to support the transition to permanent employment for eligible workers.

Dr Oluga also addressed concerns about ghost workers in the UHC program, stating that a national verification exercise had uncovered around 600 individuals who could not be physically traced or verified at their reported workstations.

Out of an estimated 7,800 UHC workers, only about 7,200 were successfully verified, with the rest still under scrutiny. Only those currently working in health facilities, with valid professional registration and verified contracts, would be considered for permanent absorption, he said.

“We verified the presence of workers, their credentials, and their actual duty postings at health facilities. About 7,200 passed this process. The rest either could not be physically located, or their documents and work history did not match,” Oluga said.

He noted that to qualify for permanent employment, workers must meet several conditions: they must have the appropriate academic qualifications, be officially registered and retained by their professional regulators, have been recruited through Public Service Commission advertisements, hold valid contracts with county governments, and be currently stationed and actively working in a health facility.

This comes just days after Health Cabinet Secretary Aden Duale raised alarm over thousands of ghost workers under the UHC programme, warning that individuals found to have fraudulently drawn public funds would face prosecution.

Duale said the Ministry had concluded a comprehensive verification process and would only proceed with hiring once the audit was finalised. “We have the budget to hire, but no one should harass us while the process is still ongoing,” he said during a recent visit to Uasin Gishu County.

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The Ministry’s final report showed that out of about 8,000 UHC workers, more than 600 could not be traced, and others were found to be unqualified for their roles. Duale said such individuals would be required to refund public funds and could face legal consequences.