Nairobi, Kenya – July 13, 2025
Mulembe Times
The Employment and Labour Relations Court has dealt a significant blow to former NHIF staff by striking down attempts to reserve SHA positions exclusively for them, affirming that there will be no automatic absorption into the Social Health Authority (SHA).
In a ruling delivered on May 29, 2025, Justice Byram Ongaya declared that SHA’s recruitment process was unconstitutional and discriminatory. The court held that prioritizing ex‑NHIF employees for roles such as Quality Assurance Officers, County Coordinators, and directors violated the constitutional principles of fair competition and equal opportunity under Article 232
What the High Court Verdict Means
- No guarantees: Former NHIF staff must now compete in open, transparent recruitment, same as any other Kenyan—no preferential treatment.
- Rejection of SHA’s initial plan: The court barred SHA from proceeding with job ads that explicitly favored ex-NHIF staff.
- New recruitment guidelines: SHA must publish all vacancies publicly and run a competitive hiring process based on merit.
Background and Transitional Mandates
The SHA was established under the Social Health Insurance Act, 2023, officially launching on October 1, 2024, to replace NHIf. Initially, the Public Service Commission (PSC) extended contracts for former NHIF staff—over 1,700 individuals—for six months to allow time for recruitment, per the SHA board’s staffing plan that capped positions at 815.
The PSC also clarified that those not offered SHA roles could be redeployed within the public service or retire, depending on eligibility.
Divergence Between PSC and SHA
Previously, COTU Secretary-General Francis Atwoli asserted that ex-NHIF staff would be automatically transitioned into SHA unless disciplinary issues or retirements applied. The PSC, however, insisted all staff must apply afresh and undergo suitability assessments.
What Comes Next for Ex‑NHIF Staff
- Apply like everyone else: Former NHIF employees must meet qualifications and compete through transparent recruitment.
- Seek redeployment: Those not shortlisted at SHA will be reassigned across the public service or retire.
- Await fresh ads: SHA is expected to relaunch its recruitment portal with properly advertised vacancies.
Expert Insight
Labour lawyer Mary Muoki said:
“The court’s ruling reinforces constitutional values of fairness and merit-based hiring. It will protect other Kenyans from being unfairly locked out of public service jobs.”
In Summary
While the SHA transition offered former NHIF employees a temporary path into the new system, the High Court has now reaffirmed that public service jobs must be open to all, and free from discriminatory hiring practices. Ex‑NHIF staff will need to earn their roles, and the broader recruitment process must be transparent, competitive, and inclusive.
