Sh3.8bn needed to make UHC jobs permanent , says report
The committee, chaired by Seme MP James Nyikal, has also disclosed that an additional Sh5 billion will be required to pay gratuities to UHC staff once their contracts expire in May 2026.
A new report by the Health Committee has revealed that Sh3.8 billion is needed to convert Universal Health Coverage (UHC) workers to permanent and pensionable terms, with counties set to take over the payroll starting July 2025.
The committee, chaired by Seme MP James Nyikal, has also disclosed that an additional Sh5 billion will be required to pay gratuities to UHC staff once their contracts expire in May 2026.
"The national government, through the Ministry of Health, has committed to providing additional resources in the financial year 2026/27," the report notes.
Currently, UHC workers are on contract terms which are scheduled to end in May 2026. The government has already allocated Sh4 billion in the 2025/26 budget for stipends to support them before the transition.
The report, which reviewed the proposed Annual Expenditure Estimates for the Financial Year 2025/26 and the Medium Term, also confirms that the Ministry of Health has agreed with the Council of Governors to shift both the payroll and budget of UHC staff to county governments from July 1, 2025.
The committee has asked the Ministry of Health, the Council of Governors, and UHC workers’ unions to come up with a clear plan for the conversion process.
They are also expected to explain how gratuity payments will be handled when the contracts end.
This plan must be submitted within 30 days of the report’s adoption.
"Furthermore, the National Treasury is tasked with providing county governments with an additional Sh3.8 billion to cover the costs of converting UHC staff into permanent employees with pensionable terms, and Sh5 billion for their gratuity," the report states.
The committee has also called on the Ministry of Health to provide accurate data on the number of UHC workers who will be taken up by the counties and those already on permanent and pensionable terms.
The Annual Budget Estimates were tabled in the National Assembly on April 30 and forwarded to departmental committees for review.
These committees will submit their findings to the Budget and Appropriations Committee for final approval by the House.
