Union warns of court action if SHA fails to absorb former NHIF workers
KUCFAW General Secretary Andrew Kinyua said the recruitment drive appears to violate the provisions of the Social Health Insurance Act (SHIF) 2023, which requires that former NHIF staff be given priority in staffing the new authority.
Despite repeated promises, former employees of the defunct National Health Insurance Fund (NHIF) remain uncertain about their future under the newly established Social Health Authority (SHA).
Frustrated by months of silence and unclear communication, some have now issued a 72-hour ultimatum to the SHA board, threatening legal action if their concerns are not addressed.
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In a statement released on Friday, the Kenya Union of Commercial, Food and Allied Workers (KUCFAW) raised concern over what it described as a deliberate move by SHA to sideline employees of the defunct NHIF during the ongoing recruitment process.
KUCFAW General Secretary Andrew Kinyua said the recruitment drive appears to violate the provisions of the Social Health Insurance Act (SHIF) 2023, which requires that former NHIF staff be given priority in staffing the new authority.
Kinyua accused SHA of disregarding both President William Ruto’s public assurances and the transitional clauses in the law that protect NHIF employees, warning that more than 80 per cent of the workers could be left out of the new structure.
“We are contemplating taking legal action to have the entire recruitment process declared unlawful if we do not receive a satisfactory response from the board within 72 hours,” Kinyua added.
He further cautioned that sidelining NHIF’s experienced workforce could threaten the success of Kenya’s Universal Health Coverage (UHC) rollout.
“Most NHIF employees possess the technical skills, institutional experience, and deep understanding of social health protection systems. Replacing them with new recruits who require retraining could disrupt the efficiency and continuity of health insurance services,” Kinyua warned.
The Social Health Insurance Act, 2023, which repealed the NHIF Act, established the SHA and introduced three new funds — the Primary Healthcare Fund, SHIF, and the Emergency, Chronic and Critical Illness Fund.
The law explicitly provides for the absorption of NHIF staff into SHA to ensure a smooth transition and safeguard institutional knowledge. However, many of the former NHIF employees have expressed frustration that the recruitment process has lacked transparency, with little clarity on how experience and merit are being evaluated.
The transition, initially expected to conclude by the end of 2024, was designed to enhance healthcare access and accountability. But KUCFAW now warns that mishandling the human resource component could undermine these goals.
SHA has yet to issue an official response to the union’s claims.
The Ministry of Health announced that all NHIF staff would continue to serve under SHA for six months or until the new authority completes its recruitment process, to ensure continuity and compliance with the law. He reiterated that no NHIF employee would lose their job, and those redeployed would retain their current grades and salaries.
The uncertainty dates back to October 2024, when NHIF was dissolved and replaced by SHA as part of major health sector reforms. The shift, intended to streamline healthcare financing, left hundreds of NHIF workers unsure about their redeployment and job security.
Although the Employment and Labour Relations Court delivered a ruling in their favour on July 23, 2025, directing that all affected staff retain their full salaries and benefits, anxiety persists.
Justice Byram Ongaya, who delivered the ruling, emphasised that salary protection was not just an act of goodwill but a legal duty owed to the workers.
“The salaries of former NHIF employees must remain intact during and after redeployment. No one shall suffer financial loss as a result of structural changes in public service,” the judge ruled.
Before its dissolution, NHIF had 1,737 employees across the country. Only 815 were absorbed into SHA, while 922 were transferred to the Public Service Commission (PSC) for redeployment to other ministries and departments.
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