The Public Service Commission (PSC) has assured former National Health Insurance Fund (NHIF) employees who were not absorbed into the Social Health Authority (SHA) that plans are underway to redeploy them to various government ministries, departments and agencies.
The assurance followed a consultative meeting held on July 7, 2026, between PSC Chairperson Francis Meja and SHA Chairperson Abdi Mohamed, alongside senior officials from both institutions, at the Commission's headquarters.
During the meeting, SHA informed the Commission that it is nearing the completion of recruiting staff under its approved establishment, paving the way for the redeployment of former NHIF employees who were not successful in securing positions within the new authority.
"The Public Service Commission and Social Health Authority (SHA) have assured former employees of the National Health Insurance Fund (NHIF) of smooth redeployment into the mainstream public service," PSC said in a statement.
Following the completion of SHA's recruitment process, all former NHIF employees who were not absorbed have officially been handed over to the Public Service Commission, which will oversee their placement across the public service.
According to PSC, 1,158 officers have so far been released for redeployment in phases, with the current phase involving 885 officers awaiting placement in various ministries, departments and state agencies.
The Commission and SHA said they will continue working closely with relevant government institutions to ensure the redeployment process is completed smoothly and within a reasonable timeframe.
The redeployment exercise stems from the dissolution of the National Health Insurance Fund in late 2024, when the agency ceased operations after the establishment of the Social Health Authority under Kenya's healthcare reforms.
At the time of its closure, NHIF had 1,737 permanent and pensionable employees. However, only 815 members of staff were approved for absorption into SHA, leaving 922 employees without positions in the new organisation.
Those employees were earmarked for redeployment to other government institutions through the Public Service Commission, but many have experienced months of uncertainty as they awaited placement.
Reports indicate that more than 200 affected employees faced prolonged delays despite remaining on the government payroll and continuing to receive their salaries while awaiting redeployment.
The transition from NHIF to SHA also left behind substantial financial obligations, including approximately Ksh33 billion in outstanding claims owed to healthcare providers before NHIF's dissolution.
To begin addressing the backlog, the government recently released Ksh4 billion approved by President William Ruto to fully settle all verified hospital claims valued at Ksh10 million and below. The payment is expected to provide relief to smaller healthcare facilities that have been awaiting reimbursement.
Healthcare providers with verified claims exceeding Ksh10 million will have to wait longer, as the government undertakes a 90-day verification exercise to validate the claims and develop structured payment plans for the outstanding balances.