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NEWS & CURRENT AFFAIRS

The Nairobian

NHIF staff protest pay cuts in transition to Social Health Authority

National

By Okumu Modachi | Mar 13, 2025

A section of Social Health Authority(SHA) building on 5th March 2025 located at Upper Hill in Nairobi. [Edward Kiplimo,Standard]

Employees of the defunct National Health Insurance Fund have expressed concerns over the reports of plans to reduce their salaries while transitioning to the newly established Social Health Authority.

Under their umbrella, the Kenya Union of Commercial Food and Allied Workers (KUCFAW), expressed their displeasure with the new developments that, upon implementation, will see their pay-slips negatively affected.

In a statement on Wednesday, KUCFAW Secretary General Boniface Kavuvi urged the Public Service Commission (PSC) and Salaries and Remuneration Commission (SRC) to honour the Recognition and Collective Bargaining Agreement that binds their relationship with unionisable employees.

Kavuvi said that changes in salaries and/or wages for unionisable employees can only be done through negotiations.

"The new employer must consider acting in a manner as not to undermine Trade Union representation by unilaterally deciding on salaries without subjecting the same to the process of negotiation," he said.

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This shocker to the employees of the defunct NHIF comes after it emerged that the staff deployed to SHA will face significant pay-cuts, a development that does not sit well with the employees who are now demoralised.

Positions internally advertised by SHA including that of Chief Executive Officer, directors and deputy directors and regional managers with reduced pay now dims further hopes of the frustrated employees.

"It is our sincere belief that the leadership of SHA and that of PSC and SRC will not undermine the right of Trade Union representation which find strong endorsement under Article 41of the Constitution," stated Kavuvi.

Speaking to The Standard, Medical Services Principal Secretary Harry Kimtai said they advertised for the positions, following the guidance of PSC, saying due process was followed.

"We followed due process to onboard former NHIF staff to SHA in accordance with the authority's Act, 2023, sorted approval from PSC and complied with SRC guidance,' he told The Standard.

PSC had also communicated to the employees, in a letter, noting that their permanent and pensionable terms of engagement with NHIF were to automatically come to an end on November 21, 2024.

Kavivu, however, argued that their initial agreement with PSC and SRC resolved that the terms of service of the employees of the defunct NHIF transitioning to SHA be governed by the Law and Collective Bargaining Agreement.

He also lamented over a number of issues that still remain unresolved between the union and the employers, including the transfer of Recognition and Collective Bargaining Agreement to the new authority

He urged members to be conscious of any changes which may, in any way, negatively affect their salaries or wages

SHA requires 815 employees against 1732 who were under NHIF. The process of transition, according to the Ministry of Health, should be complete within the next two months.