Why SHA has closed all regional offices

SHA Chief Executive Officer Mercy Mwangangi. [File, Standard]

The Social Health Authority (SHA) has shut all its sub-county and regional branches, including seven offices in Nairobi.

The offices were inherited from the defunct National Health Insurance Fund (NHIF).

Sources say the closures have left staff in limbo, with some redirected to county offices or the Nairobi headquarters, while others remain at home.

Regional offices have also been shut, with managers redeployed and reassigned duties at the head office.

“Some staff report to county offices, but we do not have designated roles. That is why the majority just stay at home,” said an insider.

Another source said branches not located within county headquarters have also been closed, forcing some staff members to commute long distances.

“For example, someone who was working in Naivasha is now forced to travel to Nakuru every day. Unfortunately, you travel, then just hang around the offices doing nothing.

“Some employees have official arrangement with bosses, so that they are only contacted to report to work when need be,” added the source.

Nairobi had a total of eight branches, but only the Upper Hill branch is in operation.

Frustrate staff

“The changes are meant to frustrate staff and make them either resign or to indirectly force them to move to public service,” observed a source. 

Efforts by The Standard to get response from the top SHA management did not succeed. 

But earlier, in a memo dated July 29, 2025, SHA Chief Executive Officer Mercy Mwangangi noted that the move was part of efforts to align with its staff establishment and cut costs.

“This structural change aims to improve efficiency, reduce administrative costs, centralise operations and other long-term benefits including digitisation of process,” the letter read.

All branch managers were also instructed to secure all assets for handover. Meanwhile, SHA has maintained provision of overseas treatment for Kenyans in need of specialised care.

Overseas treatment is anchored in the Social Health Insurance Act of 2023, the Social Health Insurance Regulations 2024, and the gazetted Benefits Tariffs.

The law provides for treatment outside Kenya at a rate of Sh500,000 per person per annum, strictly for services not available locally.

These services are determined annually by the Benefits Package and Tariffs Advisory Panel (BPTAP).

In a statement, the ministry noted that SHA is currently aligning with the provisions of the law and has commenced the contract process.

“The new system will connect all stakeholders including members, referring specialists, local hospitals, the Kenya Medical Practitioners and Dentist Council, the Ministry of Health, overseas facilitates, and SHA ensuring seamless coordination,” reads a section of the statement. 

Before a patient travels overseas, hospitals must be formally contracted by SHA, hold accreditation in their home country and recognition in Kenya.

The facilities must also demonstrate linkage to a local empanelled and contracted health facility through an MoU. Overseas hospitals must request pre-authorisation before a patient travels.