Relief for ex-NHIF employees as PSC directs SHA to retain them
The Social Health Authority building in Nairobi.
Former National Hospital Insurance Fund (NHIF) employees have received temporary relief after the Public Service Commission (PSC) directed the Social Health Authority (SHA) to retain them on its payroll pending their redeployment across government.
Out of the 1,800 staff inherited from NHIF, 229 have already been redeployed to various ministries and state departments, while another 209 are awaiting placement. An unspecified number have since retired or resigned.
The directive comes amid concerns that some employees who failed to secure positions during SHA’s recent recruitment drive have gone for months without pay. Salaries were reportedly halted after their former roles were filled by newly recruited staff deployed to SHA headquarters, branches, and Huduma centres across all 47 counties.
While a small number of former NHIF staff were successful in the interviews, the recruitment process has sparked criticism, with allegations that the Authority is sidelining experienced workers in favour of new hires unfamiliar with the system and client needs.
In a letter dated April 27, 2026, PSC Chief Executive Officer Paul Famba said the transition followed the enactment of the Social Health Insurance Act, 2023, which established SHA.
“Upon conclusion of the recruitment exercise, a number of officers were not absorbed and opted for redeployment within the Public Service, in line with government policy and relevant judicial pronouncements,” said Mr Famba in correspondence addressed to SHA CEO Dr Mercy Mwangangi.
He noted that the redeployment process is being carried out in phases, with 229 officers already placed and 209 identified for the second phase. A final phase will follow the conclusion of SHA’s recruitment for remaining positions.
The PSC has extended the deployment of former NHIF staff to SHA three times since November 2024 to facilitate the transition.
In its latest directive, the Commission ordered SHA not to remove any former NHIF employees from its payroll until they are either redeployed into the Public Service, lawfully exit employment, or are formally absorbed.
“Ensure that no former NHIF staff currently on the SHA payroll is removed until they are fully integrated into the Public Service payroll through redeployment, or exit lawfully,” the PSC stated.
The Commission also directed that officers aged 59 and above be retained at SHA until retirement, in line with government policy.
Additionally, staff already issued redeployment letters but who fail to report to their assigned stations by May 11, 2026, risk losing their placements.
The PSC further emphasised that employees opting for redeployment will retain their NHIF salary terms on a personal-to-holder basis until they exit public service.
SHA has also been instructed to facilitate timely release of redeployed officers and provide all necessary staff records to support the process, while keeping PSC updated on ongoing recruitment.
The transition to SHA has faced criticism, with stakeholders accusing the government of rushing its rollout and exposing former NHIF workers to prolonged uncertainty.
Some have argued that the government should have absorbed existing staff and relied on natural attrition, noting that many employees are over 50 years old.
Health Cabinet Secretary Aden Duale has also dismissed claims of ethnic bias in SHA recruitment, following allegations of nepotism and favouritism.
Meanwhile, uncertainty continues to weigh on affected workers, many of whom report to offices daily without assigned duties.
