Sh3.8 billion needed to secure jobs for UHC staff, House report shows
The report, presented by Seme MP James Nyikal, also shows that an additional Sh5 billion will be required to pay gratuities to UHC staff once their contracts end.
A new report by the National Assembly’s Health Committee has revealed that Sh3.8 billion is needed to shift Universal Health Coverage (UHC) workers from contract to permanent and pensionable employment.
The funds will enable the transition of thousands of health workers whose contracts are set to expire in May 2026.
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The report, presented by Seme MP James Nyikal, also shows that an additional Sh5 billion will be required to pay gratuities to UHC staff once their contracts end.
The committee is reviewing the proposed Annual Expenditure Estimates for the 2025/26 financial year and the Medium Term and has underlined the urgent need for these resources.
“The national government, through the Ministry of Health, has committed to providing additional resources in the financial year 2026/27,” the report states.
Currently, all UHC workers are on contract terms. The report notes that Sh4 billion has already been allocated in the 2025/26 budget for their stipends, but more funding is needed to ensure a smooth transition.
From July 1, 2025, the payroll and budget for UHC workers will be transferred to county governments. This follows consultations between the Ministry of Health and the Council of Governors.
The committee has directed the Ministry of Health, the Council of Governors, and the UHC workers’ unions to come up with a clear plan for converting staff to permanent terms and managing gratuity payments. This plan must be submitted within 30 days after the report is adopted.
“Furthermore, the National Treasury is tasked with providing county governments with an additional Sh3.8 billion to cover the costs of converting UHC staff into permanent employees with pensionable terms, and Sh5 billion for their gratuity,” the report stipulates.
The Ministry of Health has also been asked to provide data on UHC workers who qualify for transition to the counties and those already on permanent terms.
The 2025/26 budget estimates were tabled in the National Assembly on April 30, 2025, and sent to various committees for scrutiny.
These teams will review the spending plans for Ministries, Departments and Agencies before submitting their findings to the Budget and Appropriations Committee for final presentation in the House.
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