Ex-NGO board boss says teachers' transfer to SHA amounts to double taxation

Former Private Security Regulatory Authority (PSRA) Director-General Fazul Mahamed chats with Labour Cabinet Secretary Alfred Mutua during a previous event. [File, Standard]

Former NGO Co-ordination Board Executive Director Fazul Mahamed has hit at the Teacher Service Commission for what he termed as double taxation under the new medical scheme.

Fazul said for years, teachers received medical allowances as part of their basic pay, funds that were later redirected to support a medical insurance cover procured by TSC through a consortium of private insurers.

Although the shift drew criticism primarily due to inadequate specialised facilities in some regions, Mr Fazul said the teachers still benefited from two parallel systems: their statutory NHIF (now SHA) contributions and the private insurance paid for using the scrapped allowances.

According to him, effective December 1, 2025, all teachers under TSC lost the medical allowances previously embedded in their salaries and are now required to pay out-of-pocket 'fees for service' under the Public Officers Medical Scheme Fund (POMSF), administered through the Social Health Authority (SHA).

This is in addition to ongoing statutory SHA deductions reflected on their payslips.

READ: Teachers' fears as shift to SHA cover takes effect

Mr Fazul said the Public Officers Medical Scheme Fund (POMSF) has collapsed the dual structure, leaving teachers with a single option, even though they argue they are still funding both systems.

The former Private Security Regulatory Authority (PSRA) Director-General argued that TSC implemented the transition without adequately consulting with the teachers and the relevant stakeholders in the education sector, and devoid of sufficient public participation, which is a core principle in the constitution.

"As a result, over 400,000 Kenyans are now in dire distress due to administrative actions taken by TSC that blatantly violate their rights not only as teachers but as citizens of the Republic," he said.

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While questioning who speaks on behalf of the teachers whose rights have been outrightly violated and economically sabotaged, Fazul said the move leaves teachers unprotected, unheard, and burdened by an unfair, punitive and unsustainable system.

"Why would any Kenyan and a teacher for that matter, be taxed twice for the same service, one taxed under the statutory deduction, and another one imposed by TSC as 'fees for service' to access medical services," he posed.

He added, "This is economic sabotage disguised as reform. Teachers are being punished for a system they did not design, did not approve, and were not consulted on."

The TSC has yet to issue a comprehensive public statement addressing the concerns or clarifying how the new deductions and service fees align with constitutional requirements and labour protections.