Health CS Susan Nakhumicha has confirmed that Kenyans will begin contributing to the Social Health Insurance Fund (SHIF) in February, following recent court ruling which okayed scheme’s implementation.
The CS says the fund is crucial to ensure lower cost of health care since many Kenyans will have access to affordable medical care.
“I am happy that the courts allowed us to continue with the implementation of this program. We are on course to deliver to Kenyans what our government promised to Kenyans,” she says.
CS Nakhumicha adds that a transition committee has been tasked with drawing a road map on how the smooth transition to Social Health Authority will take place.
Further, Kenyans who will have paid their contributions to the repealed National Health Insurance Fund will not be made to pay again after the transition to the Social Health Insurance Fund, clear fears that Kenyans might be subjected to fresh payments once the transition from NHIF to the new fund takes place.
1. The SHIF Mandate
President William Ruto’s flagship project, the Social Health Insurance Fund (SHIF), aims to revolutionize healthcare accessibility in Kenya. This initiative replaces the 57-year-old NHIF and addresses gaps in coverage, particularly for those in the informal sector.
2. Key Suspended Provisions:
While the rollout of SHIF faces legal challenges, certain provisions, such as registration prerequisites for public services and healthcare access based on contribution status, remain suspended until further legal proceedings.
3. Contribution Changes:
Under SHIF, the contribution structure undergoes significant adjustments. All workers are now expected to contribute 2.75% of their gross pay towards the health fund, eliminating the previous cap of Sh1,700 for higher earners.
4. Monthly Deduction Breakdown:
Understanding the new deduction rates is crucial for HR professionals. SHIF introduces a progressive system, ensuring affordability and equity. We see adjustments for various income brackets, with a notable shift in deductions for each salary range.
5. Mandatory Contributions:
SHIF makes contribution mandatory for all adults seeking government services. Furthermore, it requires foreigners staying for over 12 months to enroll, emphasizing the universal nature of the health insurance scheme.
6. Unemployed Contributors:
Individuals not employed or classified as vulnerable will now pay a monthly contribution of Sh1,000, a revision from the initially proposed Sh500.
7. Government and UHC Commitments:
The government pledges contributions for vulnerable individuals, and under the Universal Health Coverage (UHC) program, commits to building health facilities to ensure accessibility across the nation.
Additional Info: ElevateHR Africa
