All employees of the defunct National Hospital Insurance Fund (NHIF) who were not competitively recruited into the Social Health Authority (SHA) have now been redeployed across the Public Service.
Information from one of the affected employees confirms that the redeployment exercise concluded on Monday, 3 August 2026, with officers deployed to various ministries, departments, and agencies based on their qualifications and experience. They will retain their remuneration under “personal-to-holder” terms.
The redeployment marks the final phase of the government’s transition from NHIF to the Social Health Authority, under the Social Health Insurance Act 2023. It brings the transition process to a close and fulfils President William Ruto’s promise that no employee would lose their job.
The exercise follows a communication from SHA Chief Executive Officer Dr Mercy Mwangangi on 19 June 2026, which informed employees unsuccessful in the substantive recruitment for management positions that their temporary engagement with the Authority had ended.
In her letter, Dr Mwangangi advised the affected employees to choose one of two options provided under the Social Health Insurance Act: either retire from the Public Service or opt for redeployment within the Public Service.
The communication further stated that employees choosing redeployment would have their employment records transferred to the Public Service Commission for administrative processing, with deployment undertaken on a “personal-to-holder” basis, in line with the Employment and Labour Relations Court directive.
SHA also informed the affected officers that responsibility for their salaries would revert to their deployed institutions, effective from 1 July 2026.
Documents seen by KBC Digital show that affected employees formally communicated their preference for redeployment, requesting SHA to forward their employment records to the Public Service Commission to facilitate the process.
The completion of the exercise delivers on commitments made by President William Ruto and Head of Public Service Felix Koskei during the rollout of the new health financing system.
During Mashujaa Day celebrations in 2024, President Ruto assured NHIF employees that the transition to the new health insurance framework would not result in job losses.
“I want to assure them that no one will lose their jobs, and I appreciate their dedication and service during this transition,” the President said.
Head of Public Service Felix Koskei later reiterated this assurance, stating that employees not absorbed into SHA would be redeployed to ministries, departments, state corporations, and other government agencies to guarantee full staff retention.
