The Public Service Commission (PSC) has announced a six-month contract extension for all former employees of the defunct National Health Insurance Fund (NHIF), allowing them to continue working under the newly established Social Health Authority (SHA). This temporary arrangement aims to ensure uninterrupted service delivery and operational stability as the country transitions to a new health financing model.
PSC Chairperson Anthony Muchiri made the announcement during a consultative meeting convened by Health Cabinet Secretary Aden Duale. “The move is intended to ensure uninterrupted service delivery and maintain operational stability during the transition period,” said Muchiri. He added that the extension would remain in effect until SHA completes its recruitment process or until the six-month period lapses — whichever comes first.
The meeting, which also included SHA Chairperson Abdi Mohamed, focused on addressing key operational and human resource challenges central to the continuity of the Universal Health Coverage (UHC) agenda.
In addition to the contract extension, Muchiri directed that any former NHIF staff who have formally requested redeployment to other public service entities be reassigned immediately, with the process set to begin next week.
Health CS Duale emphasized that these decisions reflect the government’s commitment to a seamless, lawful, and stable transition to a more inclusive and efficient healthcare system. The transition follows the official dissolution of NHIF and the launch of SHA on October 1, 2024.
The employment status of over 1,700 former NHIF staff had been in question, with their initial contracts under SHA set to expire at the end of this month. Last year, the government had committed to retaining these employees under SHA for a six-month period to undergo suitability assessments and interviews for permanent positions.
Speaking on November 26, 2024, Government Spokesperson Isaac Mwaura stated that staff not absorbed into SHA would be redeployed to other public service roles, in accordance with transitional guidelines.
President William Ruto also weighed in on the matter during a recent event at State House, where he assured former NHIF employees of job security throughout the transition. “As promised, NHIF staff have been given priority in the recruitment process. Those not selected for SHA roles will be redeployed across other sectors of government,” said the President. “My assurance to all Kenyans is that no one will lose their job.”
The transition to SHA is a cornerstone of the government’s Universal Health Coverage reforms, which aim to create a more accessible and equitable healthcare system for all Kenyans.
