Former NHIF employees who failed to secure positions at the Social Health Authority (SHA) are set to be redeployed to other government institutions. The Public Service Commission (PSC) said it is working on a smooth transition process to place the affected workers within ministries, departments and state agencies.
PSC Chairperson Francis Meja discussed the matter with SHA Chairperson Abdi Mohamed during a meeting held on July 7, 2026. The meeting focused on finding a solution for workers who remained without positions after the SHA recruitment process.
More than 1,000 workers await placement
According to PSC, SHA has almost completed hiring staff based on its approved establishment. The recruitment process left several former NHIF workers without positions in the new health agency.
PSC confirmed that 1,158 officers have been released for redeployment in phases. The current group includes 885 former employees who are waiting for placement in different government offices.
Both institutions said they will continue working together to ensure the affected workers join their new stations without delays. They added that the transition process will continue in collaboration with relevant government agencies.
NHIF transition left hundreds without SHA slots
The redeployment issue started after the government replaced NHIF with SHA in 2024. At the time of its closure, NHIF had 1,737 permanent and pensionable employees.
However, only 815 former NHIF workers received approval to join SHA. The remaining 922 employees were listed for redeployment through PSC.
Many of the affected workers spent months waiting for new assignments while remaining on the government payroll. The delays created uncertainty as officers waited for deployment to new workstations.
Workers continued receiving salaries
Despite the uncertainty, former NHIF employees who lacked SHA positions continued receiving their salaries. The prolonged transition created concerns among workers who were unsure about their future roles.
PSC’s latest announcement offers a possible solution for those awaiting deployment. The commission will now coordinate placement with different government institutions.
NHIF closure left unpaid hospital claims
The transition from NHIF also left behind billions of shillings in unpaid medical claims. Healthcare providers were owed about Ksh33 billion in pending claims accumulated before NHIF was dissolved.
The government recently released Ksh4 billion to settle verified claims worth Ksh10 million and below. The payment targets smaller healthcare facilities that have struggled with delayed reimbursements.
Facilities with claims above Ksh10 million will undergo further verification before receiving payment arrangements. The government says the process aims to clear outstanding debts while completing the transition to the new health insurance system.
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