The redeployment of staff from the National Hospital Insurance Fund (NHIF) to the newly formed Social Health Authority (SHA) has stirred controversy, amid claims of contempt of court and complaints over slashed salaries.
This follows the recent issuance of deployment letters by the Public Service Commission (PSC) to former NHIF employees, who have been operating under SHA since the NHIF Act was repealed in November 2023.
At least 215 letters have so far been dispatched to staff at all levels—from top management to clerical workers and directors—with an additional 400 expected in the coming days.
According to insiders, some employees have already been reassigned to the Ministry of Culture, while others are now under the PSC and awaiting further deployment. The list of recipients includes both those who applied for internal roles within SHA and those who did not. “So far, 215 letters have been issued, and we’ve been informed that an additional 400 will follow,” a source familiar with the matter said.
The letters, signed by SHA Chief Executive Officer Dr Mercy Mwangangi and dated 10 June, required affected staff to report to their new stations by 11 June.
In one such letter, the CEO wrote:
“The PSC has now appointed you to the position of Chief Clerical Officer – General Office Services at the State Department for Public Service (for deployment), effective 11 June 2025, in accordance with the provisions of Article 234(2) of the Constitution, read together with Section 33 of the Public Service Act, and pursuant to Paragraph 6(5)(b) of the First Act. This marks the end of your assignment with SHA, in line with the transitional provisions governing the deployment of staff from the former NHIF.”
Employees with outstanding leave have been instructed to proceed on leave immediately and ensure handover of any pending tasks as directed by their supervisors.
Some of those who received redeployment letters have already reported to their new posts, though documentation issues have been flagged. “Yes, we have employees who have already reported, but they have no letters to that effect,” a source confirmed.
The timing of the letters has raised eyebrows, as a court order had earlier halted recruitment at SHA. Staff have accused the authority of acting in contempt of court, arguing that deployment letters should originate from the PSC—their legal employer.
A recent court ruling directed SHA to re-advertise all positions publicly. However, CEO Dr Mwangangi declined to comment, citing the matter’s status in court. SHA Board Chair Dr Abdi Mohammed, who is closely involved in staffing matters, has also remained silent.
Following the dissolution of NHIF and the establishment of SHA on 24 November, all NHIF staff were initially seconded to SHA. SHA’s human resource structure outlined three pathways for former NHIF staff: undergoing a suitability assessment, taking an early retirement package, or absorption into other roles within the public service.
To ensure continuity at SHA, the PSC had extended the tenure of seconded staff in a letter addressed to Principal Secretary Ouma Oluga on 19 May 2025.
– By Jeremiah Richu
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