SHA faces backlash over employee job security, salary concerns

By Daisy Okiring

The Social Health Authority (SHA) and the Ministry of Health have been criticized for failing to provide clear communication regarding job security and salary expectations for employees of the now-defunct National Health Insurance Fund (NHIF). As SHA takes over NHIF operations, uncertainty looms over the fate of hundreds of workers.

Former NHIF employees have raised concerns about whether they will retain their jobs and whether their salaries will remain unchanged under SHA.

“We keep hearing that no one will lose their job, but no official has given us clear answers. The uncertainty is unsettling,” said one employee who requested anonymity.

Fears of job losses and salary cuts

One of the biggest concerns among employees is the potential for significant salary reductions. Reports indicate that some workers could see pay cuts ranging between Sh80,000 and Sh100,000, with those earning Sh200,000 potentially having their salaries reduced to Sh60,000 if transferred to public service.

In an internal memo, SHA Chairperson Abdi Mohammed confirmed that SHA has fewer job openings than NHIF had employees—only 815 positions compared to NHIF’s 1,732 staff. He reassured workers that no permanent and pensionable employees would be dismissed, but also admitted that not all NHIF staff would be absorbed into SHA

According to the SHA Act, 2023, employees who are not appointed to SHA roles have the option to either take early retirement from public service or seek redeployment to other government departments. However, those redeployed will not be eligible to apply for SHA positions in the future.

Mounting frustration and legal threat

Despite assurances from SHA leadership, employees claim that their salary concerns remain unaddressed. Many fear that moving to public service will result in lower wages, affecting their ability to pay loans and mortgages.

“If someone who used to earn Sh200,000 is now moved to a public service position with a salary of only Sh60,000, how are they expected to survive? This is no different from losing their job altogether,” one employee lamented.

Another insider, who also spoke anonymously, warned that the anticipated pay cuts could spark legal action.

“The transition committee made recommendations on handling staff issues, but those suggestions were completely ignored,” the source claimed.

Parliamentary scrutiny on hiring process

The transition to SHA has also attracted criticism from lawmakers. On February 10, 2025, the National Assembly Departmental Health Committee questioned the hiring process at SHA, accusing the leadership of favoritism in appointing individuals to top managerial roles without proper recruitment procedures.

A leaked internal memo from November 20, 2024, revealed that at least 24 senior managers were appointed in acting capacities without open interviews.

With just six weeks remaining before SHA’s full transition, many NHIF employees remain anxious about their future. Meanwhile, efforts to obtain a response from SHA Chairperson Abdi Mohammed on the matter were unsuccessful.

As the deadline set by the Public Service Commission (PSC) approaches, uncertainty continues to cloud the fate of workers affected by the restructuring of Kenya’s national health insurance system.