NHIF shutdown: Only 815 out of 1,737 employees to join SHA

The Ministry of Health has revealed that only 815 out of 1,737 former National Hospital Insurance Fund (NHIF) employees will be absorbed into the Social Health Authority (SHA), with the rest set to be redeployed elsewhere within the public service.

Lawmakers were informed that the Public Service Commission (PSC) had approved SHA’s staffing structure, which limits its workforce to 815. Consequently, 922 former NHIF staff will not be part of the new authority and will instead be placed in other government agencies.

Appearing before the National Assembly’s Health Committee on Monday, SHA acting Chief Executive Robert Ingasira said the commission had formally approved the staffing plan.

“The SHA board has since reviewed the human resource instruments and submitted the same to PSC for approval. As we sit here, we just received an approval of the PSC that caps SHA staff establishment at 815,” Ingasira told MPs.

Health Principal Secretary Harry Kimtai informed the committee that suitability tests for ex-NHIF staff transitioning to SHA would begin before the end of February 2025.

“The SHA board has since sought the advisory of both the Attorney General and the Public Service Commission on staff transition,” Kimtai said.

He further explained that the PSC officially took over the ex-NHIF employees on November 21, 2024, and assigned them to SHA for six months or until SHA completes its recruitment process, whichever comes first. He noted that the SHA board will assess qualifications and give priority to former NHIF staff who meet the requirements for available positions.

“The Board of SHA established under section 4 of the Act shall competitively recruit and appoint its staff under section 17 of the Act subject to the approved staff establishment and on such terms and conditions of service as may be determined by the Board,” Kimtai said.

He added that the law allows NHIF staff not absorbed into SHA to either retire from public service or be redeployed elsewhere.

Kimtai and Ingasira were also questioned over delays and concerns surrounding the implementation of the Social Health Insurance Fund (SHIF), which replaced NHIF. Committee Chairperson Robert Pukose, the Endebess MP, sought clarification on the process, particularly regarding how SHA’s directors and heads of departments were selected.

Nyeri Town MP Duncan Mathenge accused the SHA board of making unilateral appointments, bypassing senior staff.

“The staff of SHA is very demoralised. The letter appointing you, Dr Tracey John, as the acting SHA chief executive came with a list of individuals unilaterally appointed by the board chairman as directors and heads of departments,” Mathenge said.

“That is why we have system failures at SHA. Senior officers have been bypassed by juniors in the appointment of directors or heads of departments. The seniors are saying, well, let the junior officers try their luck even as they earn salaries as directors and heads of departments.”

Mogotio MP Rueben Kiborek also criticised SHA’s handling of the NHIF staff transition, questioning how long it would take to appoint a substantive chief executive to oversee operations.

Kimtai, however, assured MPs that all former NHIF employees had been issued letters confirming they were now under the PSC, with SHA as their current deployment.

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• 737 employees to join SHA

“They are all employees of PSC but redeployed to SHA. We take very keen interest in the transition, and we have consulted with the commission and directed the SHA Board on what to do,” he said.

He further revealed that the PSC had warned the ministry and SHA Board against any irregularities in onboarding former NHIF staff.

“The PSC has also cautioned the Ministry and the SHA Board on how to onboard the former NHIF staff to SHA. If anything goes wrong, I assure you that will be reversed. I know there was an incident where the chairman of the board went overboard, and we reversed the decision because the law must be followed,” Kimtai said.

Committee Chairperson Robert Pukose warned that Parliament would launch an inquiry into the transition process and hold accountable those who engage in favouritism or hire cronies into SHA.