Pay cut for defunct NHIF staff transitioning to new system

Staff deployed to the Social Health Authority (SHA) from the now-defunct National Health Insurance Fund (NHIF) are reportedly demoralised following significant salary cuts.

This comes after SHA internally advertised key positions with lower salary structures compared to what employees previously earned under NHIF. Before the transition, NHIF, as a government parastatal, independently set salaries.

However, under SHA, salaries are now determined by the Salaries and Remuneration Commission (SRC).

Positions advertised so far includes that of Chief Executive Officer (CEO), directors, deputy directors and regional managers. “It is demorolising to work under SHA because of salary cuts. Some employees will have a shortfall of Sh80,000 to Sh100,000,” said one source at the authority.

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But a section of junior employees like drivers were earning a salary of more than Sh250,000. According to the sources, the demoralised staff are causing slow delivery and implementation of SHA.

"How are staff expected to work, when they do not have job security, and a poor pay?" posed the source.

Another source who requested to remain anonymous, said the pay cut may lead to court battles. “As per the law, nobody is allowed to cut your pay, like what is currently reported at SHA. Why should someone lower my pay?” questioned the source.

This comes barely six months before the authority fully transitions, according to deadlines set by the Public Service Commission (PSC). NHIF had 1,732 employees, while SHA has 815 people.

Medical Services PS Harry Kimtai said they advertised for the positions, following guidance of PSC. He said due process was followed in placement of salary scale for employees to be retained at SHA.

“We followed due process to onboard former NHIF staff to SHA in accordance to Social Health insurance Act, 2023, sorted approval from PSC and complied to SRC guidance,” he told The Standard.

According to employment structures at SHA, the employees were to undergo suitability assessment for transition.

The second option for the employee was to take an early retirement package to be handled by a team drawn from Ministry of Health, PSC and NHIF.

The third option was to be absorbed to other public entities. In an interview with The Standard on Tuesday, Kimtai maintained that the ministry expects a smooth transition.

“Only vetted officers will be allowed to transition to avoid sabotage,” added the PS.

In a letter to employees, PSC noted that their permanent and pensionable engagement with NHIF was to automatically come to an end on November 21, 2024.

The employees were deployed to SHA in their terms of engagement with NHIF, for a period of six months, or until SHA undertakes a recruitment exercise, with all employees expected to apply.

“You will be eligible and at liberty to apply for and be considered for appointment by SHA in the said recruitment exercise on the terms and conditions of service at SHA,” reads a section of the letter.

In the event of any employee not being appointed by SHA, the PSC noted that they will be notified, whereas those retiring within a period of six months retained at SHA.

Advertisement was done despite SHA chairperson Dr Abdi Mohammed hand-picked individuals for respective top managerial positions at the authority.

In an internal memo dated November 20, 2024 seen by The Standard, at least 24 senior managers were appointed in various roles, in an acting capacity.

Among those appointed were the current acting chief executive, Robert Ingasira, designated to serve concurrently as the Director and the authority’s Finance Manager.

Other positions filled include that of Corporate Secretary, Director of Human Resources and Administration, Director of Internal Audit, Director of Information Communication Technology, Director of Provider and Beneficiary Administration, Director of Benefits and Claims Management and Head of the Finance and Accounts Department.

Heads of various departments were also appointed.

Sources have said there is wrangling between individuals hand-picked for the respective positions and those who were serving, in the same capacity, under NHIF.

“We have conflict in delivery of work. Actually, majority of staff whose positions were picked are not working. But this is a none issue because they are still drawing their pay,” said the source.

On February 10, MPs poked into competency in hiring process at the authority, accusing the SHA chairperson of unlawfully hand-picking individuals for key positions.

Nyeri Town MP Duncan Mathenge said the move may result into incompetent workforce running the authority, compromising service delivery.

Speaking during National Assembly Committee’s probe on SHA, the MP said there has been some re-organisation as the authority does not follow protocol of handling changes in staff.

However, during the probe, Dr Mohammed, who replaced Dr Timothy Olweny was not present, an issue that angered MPs as he was expected to give details on transition process.

The committee chairperson, who is also Edembes MP Dr Robert Pukose said illegal hiring process according to Pukose is likely to result into an audit by the committe.

“We just want to caution PS that is something that can make the committee start an inquiry to how we are transitioning because we must be transparent and not have some intimidation or victimisation or favouritism in terms of recruitment of staff because that will be an abuse of office,” said Pukose.

But in an interview with The Standard, Ingasira said the employees were to help on smooth running of the authority during transition.

"Those newly appointed individuals in senior positions were to ensure there is continuity in service provision at SHA," Ingasisa said.

Beyond recruitment process, sources have indicated that a fraction of individuals who were working under NHIF are sabotaging SHA system.