Government extends NHIF staff contracts by six months for smooth SHA transition

All former staff of the now-defunct National Health Insurance Fund (NHIF) will remain in service for six more months under the new Social Health Authority, the Public Service Commission has announced.

PSC chairperson Anthony Muchiri said the decision is meant to ensure smooth operations as SHA prepares to fully take over health insurance services.

He noted the extension will remain in place until SHA completes hiring new staff or the six-month period lapses, whichever comes first.

He made the announcement during a meeting chaired by Health Cabinet Secretary Aden Duale and attended by SHA chairperson Abdi Mohamed.

The discussions focused on managing staff matters and operations to guarantee stability during the shift to the new structure.

“The move is intended to ensure uninterrupted service delivery and maintain operational stability during the transition period,” Muchiri said.

The commission also gave the green light for the immediate redeployment of staff who have formally requested transfers to other government institutions. Muchiri said the reassignment will begin next week.

The employment terms for the 1,700 workers were initially set to end this month.

However, the government had already indicated that the staff would be allowed to serve for six more months during the transition period, with a possibility of permanent employment for those who pass the suitability tests and interviews.

Government Spokesperson Isaac Mwaura had earlier explained that those who will not be absorbed by SHA will be posted to other departments based on provisions in the transition guidelines.

“Staff not retained will be deployed to other government institutions as per the transitional clauses in the shift to SHA,” Mwaura said in November 2024.

The staff transition has raised concerns since the October 1 shift from NHIF to SHA, but President William Ruto has sought to ease fears.

While speaking at the State House recently, Ruto said the government values the skills of existing staff and wants them to be part of the new system.

“As promised, NHIF staff have been given priority in the recruitment process. Those not selected for positions within SHA will be redeployed to other roles within the public service, and no one will lose their job,” he said.

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