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NHIF Salary Scandal Blows Wide Open – Top Bosses Arrested

NHIF Pay Deals
NHIF Pay Deals

KDRTV News – Nairobi: The National Health Insurance Fund (NHIF) is facing an immense calculation after a landmark Supreme Court ruling declared that its employees are public officers subject to the Salaries and Remuneration Commission (SRC). The decision, delivered on Friday, May 30, not only invalidates past collective bargaining agreements (CBAs) but has also triggered arrests, audits, and a wave of legal and financial consequences.

For years, NHIF operated with a degree of impunity, sidestepping SRC oversight and engaging in illegal salary negotiations with the Kenya Union of Commercial Food and Allied Workers (KUCFAW) between 2013 and 2015. These negotiations resulted in bloated salary deals, now ruled unlawful. The court emphasized that state corporations like NHIF must seek prior approval from SRC before altering pay structures – a requirement NHIF blatantly ignored.

The verdict now compels NHIF to review all salary increments issued without SRC approval. This financial clean-up is expected to punch a massive hole in the fund’s already strained budget and cast a shadow over years of unchecked internal dealings.

But the drama doesn’t end in the boardroom. The fallout has reached the corridors of justice, with several top NHIF officials already in police custody. Authorities are investigating allegations of abuse of office, fraudulent payments, and potential embezzlement tied to the contested CBAs.

This ruling is seen as a major win for the SRC, which has long battled against what it calls “salary indiscipline” in state agencies. The commission now exerts stronger legal authority to curb rogue spending and enforce fiscal accountability across all public institutions.

Analysts say this case could set a precedent for similar cases across the public sector, sending a strong message that no government agency is above the law. As scrutiny intensifies, NHIF faces not just a financial nightmare but also a trust deficit among Kenyans who depend on it for critical health services.

With investigations ongoing, the biggest question now is: how deep does the rot go?

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