NAIROBI, Kenya – A new parliamentary report has revealed that the government needs at least Sh3.8 billion to transition thousands of health workers under the Universal Health Coverage (UHC) programme from contract to permanent and pensionable employment by 2026.
The National Assembly Health Committee, in its latest review of the 2025/26 budget estimates, said the funds are crucial to securing the future of UHC workers whose contracts are set to expire in May 2026.
The report, tabled by Seme MP James Nyikal, further shows that an additional Sh5 billion will be required to cover gratuity payments for the contract staff once their terms end.
“The national government, through the Ministry of Health, has committed to providing additional resources in the financial year 2026/27,” the committee noted.
Currently, all UHC workers are employed on contract terms. While Sh4 billion has already been allocated in the 2025/26 budget for their stipends, MPs say it falls short of what is needed to make the transition smooth.
Counties to Take Over Payroll
From July 1, 2025, the UHC payroll will be transferred to county governments, following an agreement between the Ministry of Health and the Council of Governors.
To prepare for this shift, the committee has directed the Health Ministry, Council of Governors, and UHC workers’ unions to submit a joint transition plan within 30 days of the report’s adoption.
The plan must outline how the staff will be absorbed on permanent terms and how gratuities will be handled.
“The National Treasury is tasked with providing counties with an additional Sh3.8 billion for converting UHC staff to permanent roles, and Sh5 billion for gratuity,” the report adds.
Data and Accountability
Lawmakers have also asked the Health Ministry to provide comprehensive data on UHC workers eligible for transition and those already on permanent terms.
This data is expected to help both levels of government plan better and ensure no eligible worker is left out.
The 2025/26 budget estimates were tabled in the National Assembly on April 30, 2025, and are now under review by various departmental committees, including health.
Once the reviews are complete, the findings will be forwarded to the Budget and Appropriations Committee for final scrutiny before the budget is debated in the House.
