400,000 Teachers to Remain Under Minet as TSC Fails Attract New Insurer Despite Exit Directive.
More than 400,000 teachers and their dependants may be forced to remain under the Minet Kenya medical scheme despite mounting dissatisfaction over service quality. The Teachers Service Commission (TSC) had hoped to transition to a new provider, but no qualified insurer has taken up the tender, leaving educators with no alternative for now.
Although the existing medical insurance contract between TSC and Minet is set to expire on November 30, 2025, multiple attempts to attract new service providers through open tenders have failed. These tenders were intended to cover the more than one million individuals currently enrolled in the scheme, including dependants.
TSC Chief Executive Officer Nancy Macharia disclosed that no insurance company other than Minet had responded to previous bids, even after repeated advertisements. She suggested that the sheer size of the teacher population and the demands of the contract may be deterring other providers. As a result, the Commission had no option but to renew the arrangement with a consortium led by Minet.
Macharia said the best offer received came from this consortium and described it as a reluctant solution rather than a competitive success.
Efforts to shift teachers to the newly formed Social Health Authority (SHA) have also stalled. While speaking before the Education Committee, Macharia stated that SHA turned down TSC’s enrollment request due to inadequate infrastructure to support such a large transition.
She clarified that TSC had previously attempted to move teachers under the national scheme—first under NHIF and now SHA—but those plans were rejected due to logistical limitations. According to Macharia, SHA confirmed during meetings that it lacked the necessary facilities to accommodate educators across the country.
Treasury Delays and Budget Shortfalls
Compounding the issue are serious financial setbacks. Although the commission managed to settle dues for the second policy year ending November 30, 2024, delays from the National Treasury have left the Commission unable to pay for the first and second quarters of the third policy year, which started in December 2024 and March 2025.
Macharia revealed that the Commission now owes Sh11.2 billion to the consortium due to delayed exchequer disbursements. She cautioned that unless Parliament allocates the required funds, teachers risk being denied access to healthcare as hospitals may turn them away due to non-payment.
Additionally, the Commission has yet to receive the Sh1.5 billion necessary to finance the Group Life Insurance benefit, which supports families of deceased teachers.
In a letter dated December 18, 2024, addressed to the Principal Secretary of the State Department for Medical Services, TSC reported that the National Treasury had instructed it to terminate the Minet contract immediately. This directive followed a broader policy decision to centralize health coverage for public servants under SHA.
According to the letter, the Treasury emphasized that TSC must end its current contract and transition into the new centralized scheme without delay.
Macharia expressed concerns about the abrupt nature of the mandate, warning that it could significantly affect the quality and scope of services teachers currently receive. She pointed out that educators have benefited from a robust medical plan since 2015, one that includes wide-ranging services such as unlimited outpatient care, inpatient coverage between Sh1 million and Sh3 million (based on job group), and additional benefits like dental, optical, maternity, local and international evacuation, and last expense coverage.
SHA Acknowledges Limitations Under New Scheme
Following the directive, SHA responded on December 20, 2024, acknowledging receipt of the Commission’s communication and a consultative meeting held the previous day. However, SHA conveyed its inability to maintain the current benefit levels offered by Minet due to financial constraints and tight implementation deadlines.
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The Authority explained that under the new Social Health Insurance framework, all public servants, including teachers, will contribute 2.75 percent of their gross income. These contributions will support access to healthcare through three main funds: the Primary Healthcare Fund, the Social Health Insurance Fund, and the Emergency, Chronic, and Critical Illness Fund.
SHA warned that while it remains committed to delivering healthcare access, the budgetary realities would require a revision of the benefit structure teachers had come to expect. The authority noted that the proposed allocations could not match the scale and scope of services under the Minet scheme.
400,000 Teachers to Remain Under Minet as TSC Fails Attract New Insurer Despite Exit Directive.
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