By Robai Ludenyi
The government has ordered an inquiry into the financial health and management of NHIF Sacco following major changes to the health insurance system that have disrupted the membership of the society.
The investigation will examine the Sacco's finances, leadership, membership and operations to establish its current position after the National Health Insurance Fund (NHIF) was replaced by the Social Health Authority (SHA).
The Commissioner for Co-operatives, David Obonyo, said the inquiry is intended to establish the true financial and governance position of the Sacco. He said the organisation has faced challenges following the disbandment of NHIF and the movement of former NHIF employees to different government offices.
NHIF was originally established to serve employees of the former health insurance fund. However, the transition from NHIF to SHA changed the structure of its membership. Some former NHIF employees were transferred to other government offices, while others retired or left the service. As a result, the Sacco lost the common employer structure that had previously brought its members together.
The changes have also affected the way members make loan repayments and other payments through payroll deductions. The he Commissioner said the Sacco itself requested the government inquiry as it seeks to clarify its records and address some of the challenges that have emerged.
Through Gazette Notice No. 15183, the Commissioner appointed Assistant Director for Co-operative, Audit Silas Okoth Dede and Senior Co-operative Officer Grace Mwihaki Gichuhi to conduct the inquiry. The Gazette Notice was dated September 9 and published on September 18, 2026.
The investigation will cover several areas of the Sacco's operations. These include its by-laws, financial condition, membership, governance structures and the way its management committee has conducted its affairs.
The inquiry will also examine the conduct of current and former members and officers of NHIF Sacco Society Limited. One of the issues expected to receive attention is the Sacco's loan book. The government wants to establish the amount of loans outstanding and understand the financial position of the institution following the changes in its membership.
Collectively, Kenyan Saccos held more than Sh884 billion in member deposits and managed assets worth over Sh1.24 trillion as of June 30, 2026.
A previous inquiry into Metropolitan Sacco found little improvement in its financial health over three years. The Commissioner said the institution was insolvent and could be wound up if attempts to find a merger or acquisition partner failed.