A recruitment drive by the Social Health Authority (SHA) has been annulled by the Employment and Labour Relations Court, following a legal challenge regarding its decision to invite only former National Health Insurance Fund (NHIF) staff to apply for key positions.

The Court found that SHA’s approach, which was based on internal advertisements circulated solely among NHIF personnel, contravened constitutional principles of fairness and equality in employment.

Justice Byram Ongaya, who presided over the matter, ruled that such a move was unconstitutional and discriminated against qualified Kenyans outside the defunct health insurer.

“There could be no ‘internal advertisement’ with respect to the defunct NHIF,” Justice Ongaya stated.

“Staff of the defunct NHIF cannot be treated as internal applicants to the first respondent.”

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The case was brought by Said Omar Abdile, a public interest litigant who questioned why positions such as Directors, County Coordinators, and Quality Assurance Officers were being restricted to a specific group of former employees.

He argued that the process lacked transparency, inclusivity, and public participation.

In response, the Court issued orders halting the March 2025 recruitment in its entirety and directed SHA to begin the hiring process afresh.

All roles must now be publicly and competitively advertised, the Court ruled, underscoring that appointments made under the flawed process were nullified.

Justice Ongaya further stressed that SHA is bound by the Public Service Commission Act, which requires open, equitable, and merit-based hiring practices.

The Court found that SHA’s failure to comply with these standards undermined public trust and violated rights guaranteed under Kenya’s labour laws.

The National Health Insurance Fund ceased to exist on November 22, 2023, after the Social Health Insurance Act, 2023, came into effect.

This transition rendered the notion of internal advertising for former NHIF workers legally and practically obsolete.

The Court directed that each party in the petition bear their own legal costs.