Former Attorney General and ex-Public Service Cabinet Secretary, Justin Muturi, has raised concerns over the legality of a new Sh1.2 billion insurance scheme for civil servants.
The government recently announced the allocation of Sh1.2 billion in the 2025/2026 financial year to settle injury and accident claims under the Work Injury Benefits Act (WIBA), Last Expense, and Group Personal Accident (GPA) scheme. Principal Secretary for Public Service and Human Capital Development, Dr. Jane Imbunya, said the allocation would cover claims accumulated since April 15, 2024.
Dr. Imbunya stressed the government’s commitment to compensating affected civil servants while ensuring a transparent and legally sound process. She also revealed plans to form a working group of experts to oversee the implementation framework.
However, Muturi has warned that the mechanism chosen risks reviving an old problem previously declared unlawful. He argued that unless the scheme is aligned with WIBA, the Insurance Act, and the Public Service Superannuation Scheme (PSSS) Act, it could expose the government to litigation, financial loss, and credibility damage.
“The perpetuation of illegality and failure to adhere to the law has left civil servants’ claims amounting to Sh7.6 billion unpaid,” Muturi stated. He added that inexperienced officials in the Ministry of Public Service and Ministry of Health have compounded the problem, leaving next-of-kin and injured workers without rightful benefits.
Legal experts share similar concerns, pointing out that the fund may be operating as an unlicensed insurance entity, a violation of the Insurance Act. They also warn of risks of fraud and mismanagement in the absence of actuarial and regulatory oversight.
Past attempts to run similar funds were disbanded by Cabinet decisions, with responsibilities transferred to the former NHIF. Despite this, legacy claims worth Sh3.93 billion remain unsettled, alongside Sh4 billion accrued since 2021.
Muturi’s warning now places the new scheme under scrutiny as questions grow about its legality and sustainability.
