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Post Reply: Row Erupts Over Management of Civil Servants' Injury and Insurance Claims

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on September 26, 2025, 9:01 am</div><div id="pl-8055"  class="panel-layout" ><div id="pg-8055-0"  class="panel-grid panel-no-style" ><div id="pgc-8055-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-8055-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
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	<p dir="ltr" data-pm-slice="1 1 []">A fierce debate has ignited within government circles regarding the administration of compensation for civil servants injured while on duty. The contention stems from conflicting directives between the National Treasury and the Ministry of Public Service, revealing deep-seated tensions over who should oversee these claims.</p>
<p dir="ltr">The Ministry of Public Service, led by Principal Secretary Jane Imbunya, has proposed establishing an internal fund with an allocation of Sh1.2 billion to directly manage compensation for civil servants, teachers under the Teachers Service Commission, and police officers. This proposal, outlined in a letter dated July 17 to the Treasury, aims to consolidate oversight of benefits, including group life, last expenses, work injury benefits, and group personal accident insurance. Imbunya referenced Executive Order No. 1 of 2023, which assigns the administration of insurance and welfare programs for civil servants to her ministry, and the Work Injury Benefits Act to support the creation of a self-insurance framework. To strengthen this arrangement, she also suggested transferring the existing Group Personal Accident and Work Injury Benefits Act unit from the Treasury to her ministry, arguing that it would enhance uniformity and efficiency in claims processing.</p>
<p dir="ltr">In contrast, the National Treasury has taken a firm stance against this proposal. In a letter dated July 1 to the Social Health Authority, Principal Secretary Chris Kiptoo emphasized that the authority holds the legal mandate to administer work injury claims. He noted that the government has already disbursed Sh1.58 billion to cover part of an outstanding Sh8.14 billion premium under the authority's management for the periods 2020/21, 2022/23, and 2023/24. Kiptoo highlighted that the government has partnered with the National Hospital Insurance Fund, now transitioned to the Social Health Authority, to provide critical insurance coverage, including group life, last expense, work injury benefits, and group personal accident insurance for civil servants and National Youth Service personnel. He argued that utilizing the authority ensures efficient claims processing and instills confidence in the compensation program, further bolstered by partnerships with reputable reinsurance entities to enhance coverage reliability.</p>
<p dir="ltr">The proposal for a ministry-managed fund has met with significant resistance from legislators. Lawmakers, including Kitutu Chache South MP Anthony Kibagendi and Makueni Senator Daniel Maanzo, have strongly opposed the initiative, labeling it as a return to illegality and a misuse of public funds. They argue that the creation of such a fund violates the Insurance Act, the Work Injury Benefits Act, and the Public Service Superannuation Scheme Act. Kibagendi vowed to reject the proposal outright, while Maanzo questioned the necessity of a parallel structure, pointing out that premiums for medical, life, work injury, group personal accident, and last expense covers have already been fully remitted to the Social Health Authority. He emphasized that only the authority possesses the legal mandate, capacity, and data to effectively manage these benefits.</p>
<p dir="ltr">Adding to the criticism, former Public Service Cabinet Secretary Justin Muturi warned against the proposed fund, highlighting its lack of actuarial and regulatory oversight. He cautioned that establishing a parallel process for employee benefits would fragment accountability, delay justice for claimants and their families, and undermine the efficiency of the existing system.</p>
<p dir="ltr">The ongoing dispute underscores a broader struggle over control and accountability in managing civil servants' welfare programs. As the debate intensifies, stakeholders await clarity on how the government will resolve this conflict to ensure that injured civil servants receive timely and fair compensation without compromising legal or financial integrity.</p>
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