SHA CEO issues deployment letters to former NHIF employees despite court order

SHA CEO Dr Mercy Mwangangi when she officially assumed office after her appointment in April 2025. [Edward Kiplimo,Standard]

The hiring and deployment of staff at the Social Health Authority (SHA) has sparked outrage, with concerns raised over alleged contempt of court and significant salary reductions.

This follows the issuance of deployment letters by the Public Service Commission (PSC) to former National Health Insurance Fund (NHIF) employees who are currently serving under SHA.

At least 215 deployment letters have already been dispatched, with an additional 400 reportedly in the pipeline.

The letters have been received by staff across various levels, including top management, general staff, and directors.

The employees had been seconded SHA following the repeal of the NHIF in November 2023.

Sources privy to the matter told The Standard that some of the affected employees have since been deployed to the Ministry of Culture, while others have been redirected to the Public Service Commission (PSC), awaiting further posting to yet-to-be-disclosed entities.

Those who received deployment letters include individuals who had applied for internal positions within SHA, as well as those who did not.

“So far, 215 letters have been issued, and we’ve been informed that an additional 400 will follow,” a source at the authority revealed.

The letters, authored and signed by SHA Chief Executive Officer (CEO) Dr Mercy Mwangangi, were issued on June 10, with affected staff expected to report to their new stations by June 11.

In one of the letters seen by The Standard, the CEO noted that the letter serves as a formal notification regarding the conclusion of the temporary deployment to SHA under the transition framework of Social Health Insurance Act. No. 16 of 2023.

“The PSC has now appointed you to the position of Chief Clerical Officer-General Office Services at State Department for Public Service (for deployment), effective June 11, 2025 in accordance with the provision of Article 234 (2) of the constitution, as read together with Section 33 of the Public Service Act, and pursuant to Paragraph 6 (5) (b) of the first schedule to Social Health Insurance Act,” reads a section of the deployment letter signed by Mwangangi, dated June 9, 2025.

It adds, “This marks the end of your assignment with SHA. In line with the transitional provisions governing the deployment of staff from the former NHIF,”

In the letter, employees with pending leave days have been directed to proceed on leave with immediate effect, to exhaust accrued entitlement before reporting to their new duty stations.

Further, the employees, according to the letter, are expected to complete any pending assignments or hand over responsibilities as directed by their supervisor.

“Submit all SHA-issued assets, documents, or access credentials before departure,” notes the letter.

As they move to their new duty stations, their "employment terms and conditions shall be stated and governed by the prevailing Public Service Human Resource Policies and Regulations, as applicable to your new appointment," noted Mwangangi.

A section of the employees who have received their deployment letters have since reported to their new duty station.

“Yes, we have employees who have already reported, but they have no letters in that effect,” said a source.

The letters signed by the SHA CEO follow a court order that stopped recruitment at the entity, with employees citing contempt of court and illegality, as they should be issued by PSC, the current employer.

A recent court ruling ordered all positions to be re-advertised publicly, effectively blocking the exclusive hiring of former NHIF employees.

SHA CEO was reluctant to comment on the matter and told The Standard that the matter is in court.

Attempts to reach SHA chairperson Dr Abdi Mohammed, who has been at the center of human resource matters at the authority, have also been futile as he did not respond to calls or text messages.