Court nullifies SHA job adverts that favored former NHIF employees

Employees of the now-defunct National Health Insurance Fund (NHIF) have suffered a major setback following a ruling by the Employment and Labour Relations Court that halted the exclusive hiring process by the Social Health Authority (SHA).

Justice Byram Ongaya, who presided over the case, ruled that the recruitment exercise was both unconstitutional and discriminatory.

His judgment followed a legal petition filed by a concerned individual.

A prohibition order is hereby issued barring the first respondent (SHA) from continuing with the ongoing recruitment process posted on its website in March 2025, which limited applications to only former employees of the defunct NHIF," stated Justice Ongaya.

He stated that the recruitment exercise carried out or currently ongoing by the 1st respondent, which restricts eligibility for roles such as Quality Assurance Officers, County Coordinators, Directors, Deputy Directors, and other listed positions solely to former NHIF employees, is discriminatory, unconstitutional, and contrary to the principles of fair competition and equal opportunity as outlined in Article 232 of the Constitution.

The court has directed the Social Health Authority (SHA) to ensure that all job opportunities within the institution are advertised through an open, transparent, and competitive process, in full compliance with legal requirements and free from any form of restriction or bias.

This follows a petition challenging SHA’s recruitment approach, which allegedly breached the Social Health Authority Act, the Public Service Commission Act, and related laws.

The petitioner took issue with SHA's decision to reserve a range of senior and mid-level positions exclusively for former employees of the now-defunct National Health Insurance Fund (NHIF).

According to the petitioner, this action was not only unlawful and unconstitutional but also discriminatory.

He maintained that since SHA is a distinct and newly established body, it cannot legally carry over staff from NHIF.

He cited Section 75(1) of the Social Health Insurance Act, 2023, which repealed the NHIF Act Cap 255, arguing that this repeal effectively terminated the public service status of NHIF staff upon the institution's dissolution.

The petitioner further argued that by restricting the ongoing recruitment to only former NHIF employees, SHA was conducting the process in a secretive, exclusionary, and discriminatory manner. He claimed these contravened constitutional guarantees of fairness, equality, and transparency, alongside various legal provisions.

This development comes barely a week after the government outlined the transition plan concerning the now-defunct NHIF.

Health Cabinet Secretary Aden Duale announced that all staff previously serving under NHIF would remain in their positions within the Social Health Authority for a transitional period of six months.

This grace period is meant to provide SHA ample time to finalize a lawful and inclusive hiring process.

"I held a consultative session with the Public Service Commission, led by Chairperson Amb. Antony Muchiri, and the SHA board chaired by Dr. Abdi Mohamed, to deliberate on the transition of personnel from the former NHIF," Duale stated.

The Public Service Commission, through a clear directive, affirmed that all former NHIF employees will continue their duties under SHA for a six-month transition period—or until the new authority concludes its recruitment exercise, whichever occurs sooner, according to CS Duale.

He further revealed that employees who had formally requested transfers to other government departments would be redeployed without delay, with the reassignment process set to commence in the coming week.

However, following the recent court decision, the fate of former NHIF staff remains uncertain. This ruling comes amid persistent calls by the affected personnel to be permanently absorbed into the new health framework under SHA.