Staff at the defunct National Health Insurance Fund (NHIF) were dealt a big blow after the Employment and Labour Relations Court ordered the Social Health Authority (SHA) to cancel its exclusive recruitment of staff at the defunct body.
The decision, ordered by Justice Byram Ongaya, declared the process unconstitutional and discriminatory, and came after a petition filed by an individual.
“The order of prohibition hereby issued restraining the 1st respondent (SHA) from proceeding with the current recruitment process published on its website in March 2025, which purported to restrict recruitment and eligibility to former staff of the defunct National Hospital Insurance Fund,” Ongaya ordered.
“The declaration that the continuing or conducted recruitment process by the 1st respondent which limits or limited eligibility for positions of Quality Assurance Officers, County Coordinators, Directors, Deputy Directors and other advertised roles or vacancies herein exclusively to former NHIF staff was discriminatory, unconstitutional and violated the principles of fair competition and equality of opportunity under Article 232 of the Constitution,” he added.
Additionally, the judge ordered SHA to advertise all vacancies in the Authority through an open, fair, competitive, and transparent process in accordance with the law, devoid of restrictions and limitations.
The petitioner had argued that SHA violated the Social Health Authority Act, the Public Service Commission Act, and other statutes after announcing various senior and mid-level management positions limited to former NHIF staff.
He argued that the move was unconstitutional, illegal, and discriminatory because SHA is a new legal entity. He further contended that the NHIF Act Cap 255 was repealed under Section 75(1) of the SHI Act, 2023, and as such, the former staff of NHIF ceased to be public servants upon the repeal and winding up of NHIF.
As such, the petitioner alleged that the ongoing recruitment limiting eligibility only to former staff of NHIF was being conducted in a closed, opaque, and discriminatory manner and violated the constitutional principles of equal opportunity and fairness amongst other numerous Constitutional provisions and statutes.
The latest comes just a week after the government issued the way forward on the state of former NHIF.
Health Cabinet Secretary Aden Duale revealed that all staff under the defunct NHIF will continue serving in the Social Health Authority (SHA) for an additional six months. The extension is intended to allow time for SHA to complete its recruitment process.
“Convened a consultative meeting with the Public Service Commission, led by Chairperson Amb. Antony Muchiri, and the Social Health Authority (SHA), chaired by Dr. Abdi Mohamed, to address the transition of staff from the defunct National Health Insurance Fund (NHIF),” Duale stated.
“The Commission issued a firm directive: all former NHIF staff will continue to serve under SHA for an additional six months or until SHA completes its recruitment process, whichever comes first,” the CS added.
Duale also disclosed that staff who had requested redeployment to other government agencies would be reassigned immediately, with the process set to begin next week.
Following the new court ruling, the status of NHIF staff is expected to remain uncertain. This comes after months of agitation by former NHIF employees for permanent redeployment under the new health scheme.
