The offices of the now defunct National Hospital Insurance Fund in Nairobi.
Less than half, or 815 of the 1,737 ex-staff of the defunct National Hospital Insurance Fund (NHIF), will transition to the Social Health Authority (SHA), lawmakers have been told.
The Ministry of Health says the Public Service Commission (PSC) has approved the new staff establishment, which will see 922 former NHIF staff redeployed elsewhere within the public service.
The ministry said the Public Service Commission on November 21, 2024, took over the 1,737 ex-staff of the defunct NHIF and subsequently deployed to SHA for a period of six months or until when SHA completes recruitment, whichever comes first.
“The SHA board has since reviewed the human resource instruments and submitted the same to PSC for approval. As we sit here, we just received an approval of the PSC that caps SHA staff establishment at 815,” Robert Ingasira, acting SHA Chief Executive told MPs on Monday, February 10, 2025.
Health Principal Secretary Harry Kimtai told the National Assembly’s Health committee that suitability tests for ex-NHIF staff transitioning to SHA would begin before the end of February 2025.”
“The SHA board has since sought the advisory of both the Attorney General and the Public Service Commission on staff transition,” Mr Kimtai said.
“The SHA board has since reviewed the Human Resource instruments and submitted the same to PSC for approval. Suitability tests scheduled to commence before the end of February 2025.”
The law also stipulates that staff of NHIF not appointed by the SHA to exercise his or her option to either retire from public service or be redeployed within the public service.
Mr Kimtai and Mr Ingasira appeared before the committee chaired by Endebess MP Robert Pukose on the delays and gaps in the implementation of the Social Health Insurance Fund (SHIF), the successor of NHIF.
Mr Kimtai said the staff transition from the defunct NHIF to the SHA is guided by Clause 6 of the First Schedule- Transitional Clauses of the SHI Act 2023.
“Despite subparagraph (1), the Board of the Social Health Authority established under section 4 of the Act shall competitively recruit and appoint its staff under section 17 of the Act subject to the approved staff establishment and on such terms and conditions of service as may be determined by the Board,” Mr Kimtai said.
“Notwithstanding the provisions of subparagraph (1), the staff of the Fund are eligible to apply for the positions advertised by the Authority and may be considered for appointment where they are suitably qualified for the positions advertised.”
The Act requires that the authority review the qualifications of all the staff of the Fund and shall, in the appointment of its staff, give priority to the staff of the NHIF who are found to be suitably qualified for the positions in the approved staff establishment.
Mr Kimtai told lawmakers that the ex-staff of the NHIF have been issued with letters indicating they are employees of the public service.
“They are all employees of PSC but redeployed to SHA. We take very keen interest in the transition and we have consulted with the commission and directed the SHA Board on what to do,” Mr Kimtai said.
“The PSC has also cautioned the Ministry and the SHA Board on how to onboard the former NHIF staff to SHA. If anything goes wrong, I assure you that will be reversed. I know there was an incident where the chairman of the board went overboard and we reversed the decision because the law must be followed.”
Mr Kimtai and Mr Ingasira were taken to task to explain how directors and heads of departments at SHA were picked by the Board.
“The staff of SHA is very demoralised. The letter appointing you- Dr Tracey John- the acting SHA chief executive came with a list of individuals unilaterally appointed by the board chairman as directors and heads of departments,” Duncan Mathenge, the Nyeri Town MP said.
“That is why we have systems failures at SHA. Senior officers have been bypassed by juniors in the appointment of directors or heads of departments. The seniors are saying well, let the junior officer try their luck even as they earn salaries or directors and heads of departments.”
Mogotio MP Rueben Kiborek said the NHIF staff were handled badly by the SHA leadership during the transition and demanded to know the time it will take to recruit a substantive chief executive who can make firm and final decisions.
Mr Pukose warned Mr Kimtai that the committee will launch an inquiry into the transition of staff from NHIF to SHA and hold to account those who will condone favouritism and hire cronies into the new health outfit.
