A total of Sh3.8 billion will be required to transition Universal Health Coverage (UHC) workers into permanent and pensionable positions, according to a new report by the Committee on Health.
The report, presented by the committee’s chair, Seme MP James Nyikal, also highlights that an additional Sh5 billion will be necessary for the payment of gratuities to UHC staff when their contracts expire in May 2026.
The report, which evaluates the proposed Annual Expenditure Estimates for the Financial Year 2025/26 and the Medium Term, emphasises the urgent need for these financial resources.
"The national government, through the Ministry of Health, has committed to providing additional resources in the financial year 2026/27," the report notes.
Currently, UHC healthcare workers are on contract terms that are set to expire in May 2026. To ensure these workers are adequately compensated upon the end of their service, Sh4 billion has already been allocated in the 2025/26 financial year for stipends.
The report further reveals that, following consultations between the Ministry of Health and the Council of Governors, the government has decided to transfer the UHC workers' payroll and budget to county governments, effective July 1, 2025.
The committee has called for a clear plan from the Ministry of Health, the Council of Governors, and the UHC healthcare workers’ unions on how to proceed with converting UHC workers to permanent and pensionable terms.
They are also expected to outline how gratuity payments will be managed when contracts end in May 2026. This plan must be submitted within 30 days of the adoption of the report.
“Furthermore, the National Treasury is tasked with providing county governments with an additional Sh3.8 billion to cover the costs of converting UHC staff into permanent employees with pensionable terms, and Sh5 billion for their gratuity,” the report stipulates.
The committee has also requested that the Ministry of Health provide detailed data on the number of UHC staff who qualify for the transition to county governments and those already employed on permanent and pensionable terms by counties.
The Annual Budget Estimates for the 2025/26 financial year were presented in the National Assembly on April 30, 2025, and were subsequently referred to departmental committees for further examination.
These committees will review the proposed estimates for various Ministries, Departments, and Agencies (MDAs) before reporting to the Budget and Appropriations Committee, which will, in turn, submit its findings to the House for final approval.
