SHA in crisis: Former NHIF staff in limbo amid Sh9bn retirement gap and court blow to hiring plan
More than 1,800 workers from NHIF were absorbed into SHA, and many who are nearing or past retirement age had hoped for a retirement package.
Hundreds of former National Hospital Insurance Fund (NHIF) employees face continued uncertainty at the Social Health Authority (SHA), as the newly formed agency grapples with a Sh9 billion funding gap and a court ruling blocking its internal recruitment strategy.
SHA Chief Executive Officer Mercy Mwangangi said in a virtual address on Monday that the authority lacks the Sh9 billion needed to facilitate early retirement for workers aged 55 and above.
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“In reality, we do not have the requisite funds to send workers on early voluntary retirement as that would cost more than Sh9 billion,” she said.
More than 1,800 workers from NHIF were absorbed into SHA, and many who are nearing or past retirement age had hoped for a retirement package.
A significant number of SHA staff have been sitting idle for almost a year, lacking job descriptions, passwords, or assigned tasks, despite the authority’s shift to a digital system.
Redeployment
Mwangangi said 215 employees who requested redeployment will receive posting letters from the Public Service Commission. For the remaining 1,400, job descriptions, passwords, and staff badges will be issued soon to allow them to resume work.
Subordinate staff who did not apply for redeployment are expected to be moved to other government offices over the next six months.
While contract extensions have been offered, there is no confirmation yet on how many staff will stay on at SHA permanently.
In another challenge for SHA, a Labour Relations Court ruling recently blocked its attempt to reserve key senior roles for NHIF-inherited workers.
The case, filed by Omar Abdile, was ruled on by Justice Byram Ongaya, who said such a move was discriminatory and against public hiring laws.
He noted that posts such as directors, deputy directors, accountants, and county coordinators must be advertised and open to all qualified Kenyans.
Despite these internal challenges, SHA is pushing forward with reforms.
It recently launched a new initiative dubbed Lipa SHA Pole Pole, a flexible payment model allowing Kenyans, especially in the informal sector, to pay insurance premiums in affordable instalments.
President William Ruto welcomed the initiative, calling it a “gamechanger” that supports his administration’s goal of universal health coverage.
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