Kenyan Court Forces Healthcare Authority to Reinstate Finance Director After Unlawful Dismissal
Nairobi, 15 April 2026
Kenya’s Employment and Labour Relations Court has ordered the Social Health Authority to rehire Robert Ingasira as finance director and pay 3 million shillings in damages after ruling his October 2025 termination was unlawful. Ingasira, originally hired by the National Hospital Insurance Fund in October 2023 on a five-year contract, became caught in Kenya’s healthcare system transition when NHIF transformed into SHA. The court found SHA breached his constitutional rights by ending his employment during the restructuring process, despite his valid contract extending until 2028.
Timeline of Events Leading to Dismissal
The case traces back to October 2023 when Ingasira was recruited as director of financial services by the National Hospital Insurance Fund for a five-year fixed term contract [1]. His employment became complicated when NHIF staff, including Ingasira, were temporarily deployed to the newly formed Social Health Authority on 22 November 2024, for six months or until their contracts lapsed [1]. The transition period was designed to facilitate Kenya’s healthcare system transformation from NHIF to SHA, but created uncertainty for existing employees about their employment status.
The Disputed Termination Process
During the NHIF’s transition to SHA in October 2025, Ingasira’s position was affected by organisational restructuring [1]. He continued to receive his salary for September and October 2025, but was subsequently informed that his contract had lapsed on 31 October 2025 [1]. The timing proved controversial, as his original five-year contract was not scheduled to end until 2028. SHA leadership argued that Ingasira’s continued presence after his secondment was merely ‘transitional courtesy’ rather than formal employment [1]. Dr Mercy Mwangangi, chief executive officer of SHA, described the reinstatement claim as ‘an afterthought and premised on a fundamental misapprehension of his employment status’ [1].
Court Ruling and Financial Implications
The Employment and Labour Relations Court rejected SHA’s arguments and ordered comprehensive remedies for Ingasira. The court directed SHA to facilitate his redeployment to the wider public service with effect from the date of termination without loss of benefits until the end of his contract or as determined by the Public Service Commission, whichever is greater [1]. Additionally, the court awarded Ingasira 3 million shillings in damages for breach of his constitutional rights [1]. This financial penalty represents a significant cost for SHA, which is already managing the complex transition from NHIF operations.
Broader Implications for Healthcare System Reform
The ruling highlights critical employment challenges within Kenya’s healthcare system reforms that extend beyond individual cases [GPT]. The court’s decision establishes important precedent for other NHIF staff who may face similar situations during the ongoing transition to SHA [GPT]. Dr Mwangangi had argued that former NHIF employees did not automatically become SHA employees after the repeal of the National Health Insurance Fund Act, but the court’s ruling suggests greater protection for employees caught in institutional transitions [1]. The case underscores the need for clearer procedures when public institutions undergo major restructuring, particularly in essential services like healthcare that affect millions of Kenyans accessing public health services.