The government has officially completed the redeployment of all former National Hospital Insurance Fund (NHIF)employees who were not competitively recruited into the Social Health Authority (SHA), assigning them to various ministries, departments, and state agencies across the Public Service.
Information obtained from one of the affected employees indicates that the redeployment exercise was finalized on Monday, August 3, 2026. Officers were deployed based on their qualifications, skills, and experience, and will continue earning their existing salaries and benefits under “personal-to-holder” terms.
The exercise marks the final phase of the government’s transition from NHIF to SHA under the Social Health Insurance Act, 2023, bringing to a close a major restructuring of Kenya’s public health financing system.
The redeployment follows a communication issued on June 19, 2026, by SHA Chief Executive Officer Dr. Mercy Mwangangi, informing employees who had unsuccessfully applied for substantive management positions within the Authority that their temporary engagement with SHA had come to an end.
In the letter, Dr. Mwangangi advised the affected staff to choose between retiring from the Public Service or accepting redeployment to other government institutions, as provided for under the Social Health Insurance Act.
“Employees opting for redeployment will have their employment records transferred to the Public Service Commission for administrative processing and deployment on a personal-to-holder basis,” the communication stated.
SHA further informed the officers that responsibility for their salaries would revert to the institutions where they had been deployed, effective July 1, 2026.
Documents seen by KBC Digital show that the affected employees formally requested SHA to forward their employment records to the Public Service Commission (PSC) to facilitate the redeployment process.
The completion of the exercise fulfills commitments made by President William Ruto and Head of Public Service Felix Koskei during the rollout of the new health insurance framework.
Speaking during the Mashujaa Day celebrations in 2024, President Ruto assured NHIF employees that the transition to the new healthcare financing system would not cost them their jobs.
“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 reaffirmed the government’s position, stating that employees who were not absorbed into SHA would be redeployed to ministries, departments, state corporations, and other government agencies to ensure full staff retention.
The completion of the redeployment exercise effectively closes the chapter on the transition from NHIF to SHA, fulfilling the government’s pledge to protect jobs while implementing reforms aimed at strengthening Kenya’s universal health coverage system.
