Kenya, Aug. 19 -- SHA branch closures across Kenya have disrupted operations, with the Social Health Authority (SHA) shutting down all sub-county and regional offices, including seven in Nairobi, inherited from the defunct National Health Insurance Fund (NHIF).
The move, part of a cost-cutting and centralisation effort, has left hundreds of former NHIF staff in limbo, with some reassigned to county offices or the Nairobi headquarters, while others remain without clear roles.
These SHA branch closures signal a major restructuring in Kenya's healthcare system, raising concerns about service delivery and employee welfare as the nation transitions to universal health coverage (UHC).
Announced in a July 29, 2025, memo by SHA Chief Executive Officer Mercy Mwangangi, the closures aim to streamline operations, reduce administrative costs, and advance digitisation, aligning with the Social Health Insurance Act of 2023.
The affected branches, previously NHIF's regional network, include key locations like Naivasha, where staff now face long commutes to county hubs such as Nakuru. Insiders report a lack of designated roles for many employees, with some instructed to stay home pending further directives.
"Some staff report to county offices, but we do not have designated roles. That is why the majority just stay at home," a source told The Standard. The transition has sparked frustration, particularly among the 1,732 NHIF employees, of whom SHA requires only 815, leaving nearly half in uncertainty.
The SHA, launched on October 1, 2024, to replace NHIF, manages three funds: the Primary Healthcare Fund, Social Health Insurance Fund (SHIF), and Emergency, Chronic, and Critical Illness Fund, aiming for equitable healthcare access.
However, the abrupt closure of branches has raised fears of service disruptions, especially in rural areas where sub-county offices were critical for registration and claims processing.
Health Cabinet Secretary Aden Duale earlier assured no job losses, with staff either absorbed into the SHA or redeployed within the public service, retaining salaries. Yet, a Sh9 billion funding gap for early retirement packages and a court ruling blocking preferential hiring for NHIF staff have complicated the transition, leaving many in limbo.
Public sentiment on social media reflects growing unease with subscribers highlighting operational issues, such as untrained staff struggling with SHA's new biometric system, impacting patient care.
Others noted SHA's lower revenue collection, Ksh 56 billion in nine months compared to NHIF's Ksh 65 billion in 2021/22, despite higher premiums, underscoring systemic challenges. The closures follow a tumultuous transition, with unions calling off a strike in October 2024 after government assurances, though concerns over pay cuts and job security persist.
The government defends the SHA branch closures as a step toward efficiency, with Mwangangi emphasising centralised operations and digital platforms like the SHA website and *147# USSD code for registration.
However, the shift to annual premiums from NHIF's monthly model has frustrated informal sector workers, with only 437,000 households current on contributions compared to 700,000 under NHIF. This, coupled with idle staff and closed offices, threatens UHC's rollout, particularly for vulnerable populations.
As SHA branch closures reshape Kenya's health insurance landscape, the government faces pressure to clarify staff roles and ensure seamless service delivery. The transition's success hinges on addressing the funding gap and retraining employees for new digital systems, with stakeholders urging transparency to maintain public trust.
The impact of SHA branch closures extends to rural communities, where access to healthcare services may weaken without local offices. Community Health Promoters are being trained to assist with registration, but the lack of physical branches could hinder outreach efforts.
For former NHIF staff in limbo, the uncertainty is palpable, with many awaiting redeployment or retirement options. The court's ruling against reserving senior roles for NHIF staff has added complexity, forcing SHA to open positions to all qualified Kenyans, potentially sidelining experienced workers.
SHA branch closures mark a bold but contentious step toward healthcare reform, leaving staff in limbo and raising questions about service continuity. As Kenya pushes for UHC, resolving these challenges will be critical to restoring confidence in the Social Health Authority's vision.
Published by HT Digital Content Services with permission from Bana Kenya.