Row erupts over management of civil servants’ injury, insurance claims
Public Service PS Jane Imbunya has proposed establishing an internal fund within her ministry, backed with Sh1.2 billion, to handle compensation directly.
A heated debate is unfolding within government circles over the administration of compensation for civil servants injured while on duty.
The disagreement has emerged from conflicting positions in letters from the National Treasury and the Ministry of Public Service, exposing tension over who should manage claims.
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Public Service PS Jane Imbunya has proposed establishing an internal fund within her ministry, backed with Sh1.2 billion, to handle compensation directly.
Imbunya cited Executive Orders and the Work Injury Benefits Act (WIBA) to support a self-insurance framework.
In a July 17 letter to Treasury, Imbunya said the move would consolidate oversight of benefits for civil servants, teachers under the Teachers Service Commission (TSC), and police officers, ensuring uniformity and efficiency.
She also suggested transferring the existing GPA/WIBA unit from Treasury to her ministry to strengthen the arrangement.
“The Executive Order No. 1 of 2023 places the administration of insurance and welfare programs for the civil service, including comprehensive group life, last expenses, work injury benefits and group personal accident insurance cover under the Ministry of Public Service,” Imbunya wrote.
Treasury, however, maintains a strict line on the matter. Principal Secretary Chris Kiptoo, in a July 1 letter to the Social Health Authority (SHA), reminded stakeholders that the authority holds the legal mandate to administer work injury claims.
He highlighted that the government had already disbursed Sh1.58 billion to cover part of an outstanding Sh8.14 billion premium under SHA’s management.
“As you are aware, the government partnered with NHIF, now SHA, to provide vital insurance cover - Group Life, Last Expense, WIBA and GPA for our civil servants and National Youth Service (NYS) for the periods 2020/21, 2022/23 and 2023/24,” Kiptoo stated.
He added that using SHA ensures claims are handled efficiently and instils confidence in the compensation programme, noting that reputable reinsurance partners had been engaged to strengthen coverage.
The proposal for a ministry-managed fund has drawn strong pushback from legislators. Kitutu Chache South MP Anthony Kibagendi and Makueni Senator Daniel Maanzo condemned it as “a return to illegality,” arguing that it breaches the Insurance Act, the WIBA Act, and the Public Service Superannuation Scheme Act.
“Creating a ministry-based fund is a return to illegality and a blatant abuse of public funds. We will reject it,” Kibagendi said. Maanzo questioned the need for a parallel structure when premiums for medical, life, WIBA, Group Personal Accident, and Last Expense covers have already been fully remitted to SHA. “It is only SHA, which has the legal mandate, capacity and data to manage these benefits,” he said.
Former Public Service CS Justin Muturi also cautioned against the fund, stressing that it lacks actuarial and regulatory oversight.
“Setting up a parallel process for employee benefits not only fragments accountability and delays justice for principal members and their families but also undermines efficiency,” he said.
Observers note that the proposed initiative mirrors the old GPA Operations Unit, which was declared illegal in 2017, raising further concerns about its legality and effectiveness.
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