Nairobi — The Employment and Labour Relations Court has dealt a major blow to the Social Health Authority's (SHA) controversial recruitment process after ruling that its internal advertisements restricted to former National Health Insurance Fund (NHIF) staff were discriminatory and unconstitutional.

Justice Byram Ongaya, delivering the ruling in a Petition filed by public interest litigant Said Omar Abdile, declared that SHA violated constitutional provisions on fair labour practices, equality, and transparency.

The Court prohibited SHA from proceeding with the recruitment published in March 2025 and directed that all positions be re-advertised competitively and openly.

Abdile challenged SHA's move to limit applications for several senior positions, including Directors, County Coordinators, and Quality Assurance Officers, to former NHIF staff, arguing the process lacked fairness and inclusivity.

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The National Health Insurance Fund (NHIF) officially became defunct on 22nd November 2023, following the commencement of the Social Health Insurance Act, 2023 on that date.

"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 1st respondent."

In his ruling, the judge also noted that SHA must comply with the Public Service Commission Act when recruiting, ensuring equity, public participation, and competitiveness in hiring processes.

The Court ordered SHA to advertise all vacancies afresh, emphasizing the importance of fair and open competition, and quashed any appointments made through the invalidated process.

Each party was ordered to bear its own costs.