Looming clash as MPs demand fresh vetting of defunct NHIF staff

A potential standoff is brewing between Parliament and the Executive over the absorption of staff from the defunct National Hospital Insurance Fund into the newly established Social Health Authority.

MPs are demanding that all NHIF employees who pass a thorough vetting process be fully integrated into SHA.

They insist that the vetting is essential to eliminate individuals involved in past corruption, particularly those who approved fictitious claims at NHIF.

Senate Majority Leader Aaron Cheruiyot stressed that while the vast majority of former NHIF staff were committed and hardworking, only those with a clean record should be absorbed.

“There are NHIF staff who were approving amputation of a human being four to six times—yet we know a human being has only two legs. Do you want us to take those ones to SHA as well? he asked.

"There must be a vetting process, done in a way that ensures no Kenyan suffers unfairly. If any employee is found to have participated in fraudulent schemes that brought down NHIF, they should not be transitioned into SHA.”

Cheruiyot made the remarks in response to a statement by Senate Majority Whip Boni Khalwale (Kakamega), who asked the Senate Health Committee to clarify SHA's recruitment plans and the fate of NHIF staff.

Khalwale wants the committee to provide the number of positions SHA plans to fill and explain whether these will be sourced exclusively from former NHIF staff

He also wants SHA to disclose the exit package for those not retained as well as redeployment options within the public service, including roles and employment terms

The senator referenced a November 2024 letter from the Public Service Commission addressed to individual former NHIF employees.

The letter required recipients to acknowledge it and confirm acceptance or rejection of temporary deployment terms. The six-month contracts mentioned in the communication expired on May 22, riggering confusion, anxiety and uncertainty among staff.

Cheruiyot emphasised SHA’s ongoing service to millions of Kenyans despite past challenges.

“I don’t know why people get offended when we say SHA is working. This country is addicted to bad news. Leaders must learn to offer hope,” he said.

Nominated Senator Tabitha Mutinda expressed concern over the limited number of positions available, arguing that all NHIF staff should be absorbed to avoid socioeconomic distress.

“Where are we expecting these young people with families to go to? Yes, SHA is working, but for it to work even better, these people must be retained,” she said.

Senate Health Committee chairman Jackson Mandago said the PSC letters created more confusion than clarity, leaving affected staff uncertain about their roles and terms of engagement.

“My concern is that SHA is calling them ‘excess staff.’ The Ministry of Health should prioritise redeploying these experienced professionals within the ministry, where staff shortages exist, instead of hiring new people,” he said.

“NHIF had more than 2,000 experienced personnel who can still serve in the public sector."

Mandago also urged the ministry and SHA to improve communication to ensure staff are reassured of their job security and continued pay.

Minority Whip Ledama Olekina echoed the need for clarity, saying SHA must determine how many NHIF employees will be permanently absorbed.

“Some employees have requested transfers to other government departments. This transition must be clear and transparent. These individuals had permanent jobs at NHIF and must retain similar terms at SHA,” he said.