1,700 staff face uncertain future as NHIF closes doors

As the transition from the National Health Insurance Fund (NHIF) to the Social Health Authority (SHA) faces significant challenges, more than 1,700 employees of the now-defunct health scheme are confronting an uncertain future, with their jobs hanging precariously in the balance.

It has emerged that the Public Service Commission (PSC) has assumed responsibility for transitioning NHIF employees into public service, as outlined in the Social Health Insurance Act, No. 16 of 2023.

In a letter addressed to all employees, SHA Acting Chief Executive Officer Robert Ingasira informed staff that the PSC would oversee their deployment.

“I wish to therefore inform you that the PSC has, on behalf of the national government, taken over the conduct of the transition process in respect of all NHIF [employees] in accordance with the provisions of the Social Health Insurance Act, No. 16 of 2023...,” reads part of the letter.

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This development comes as the NHIF is set to cease operations on November 21, 2024, with all functions transitioning to the SHA.

“In this regard, the authority wishes to notify all staff that the PSC will be communicating to all staff, individually, regarding how the transition shall be undertaken with effect from November 22, 2024, when the life of NHIF will have come to an end by operation of law,” the letter adds.

Employees have been directed to report to their respective workplaces with identification and job cards to await further communication.

Ironically, despite the shift to PSC, employees are required to continue fulfilling their duties.

“In the meantime, you are all advised to remain calm and continue discharging your respective duties and responsibilities, as your terms and conditions of service will continue in a manner that will be determined and communicated to all of you in due course by the PSC,” Ingasira stated.

Uncertainty lingers over the fate of the fund’s employees, as clarity regarding their engagement and the transition process remains elusive.

One employee, speaking anonymously due to the sensitivity of the matter, expressed concern about the lack of transparency.

“They keep saying nobody will lose their job, but it is just worrying that there is a lack of transparency on this matter,” the employee said.

According to the employee, officials have remained silent on addressing these concerns.

Legally, the Social Health Insurance Act mandates SHA to assess the suitability of NHIF employees and recruit them during the transition.

Under the current framework, employees are to undergo a suitability assessment to determine their eligibility for positions within SHA.

Alternatively, employees may opt for an early retirement package, managed by a team comprising representatives from the Ministry of Health, the Public Service Commission, and NHIF.

The third option allows employees to be absorbed into other public sector roles.

Former Health Cabinet Secretary Susan Nakhumicha had previously assured employees that those transitioning to other public service roles would retain the same pay under their current NHIF contracts.

NHIF staff were employed under the NHIF board, in accordance with the laws governing government authorities and parastatals.

Despite these assurances, SHA has yet to recruit employees to ensure the smooth delivery of healthcare services to Kenyans.

The handling of employees has raised concerns, even after top Ministry of Health and SHA officials reassured staff that no one would lose their job.

Ahead of the SHA registration rollout on September 30, Medical Health PS Harry Kimtai informed the National Health Committee, led by Robert Pukose, that NHIF employees would transition to SHA and that none had been sacked.

During another meeting, attended by former SHA chairperson Dr Timothy Olweny, the committee highlighted that SHA lacked an organisational structure.

The committee was informed that while SHA is responsible for all health scheme operations nationwide, these structures are still managed by NHIF.

Seme MP James Nyikal sought clarity, asking, “Who is employed by SHA, and do we have people employed or in acting capacity at the authority?”

In response, Dr Olweny admitted that SHA does not have employees and operates under a transitional committee.

“All operations are under SHA. At the moment, everything is done by SHA for seamless transition,” Dr Olweny told the committee. He further explained that the Attorney General had advised that NHIF staff obligations, including salaries, would be managed by the board.

After the full transition in November, Olweny noted that employees not absorbed by SHA would be redeployed by PSC.

“NHIF doesn’t have an operational board. Everything at regional offices is being undertaken by SHA,” he said.

Kimtai added that SHA is awaiting approval of human resource instruments by the PSC and the State Corporation Advisory Committee to identify the necessary positions, which will be competitively filled.

“In the provisions, 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,” he said.

SHA has also undergone significant leadership changes since its establishment in October last year.

President William Ruto recently reassigned Dr Olweny to the National Cancer Institute via a gazette notice, replacing him with Abdi Mohammed. Additionally, Elijah Wachira, the SHA Acting CEO, was suspended and succeeded by Ingasira.