Beginning March 1, 2024, Kenyans will initiate a 2.75 percent deduction from their salaries to contribute to the Social Health Insurance Fund (SHIF). This move, part of the government’s efforts to implement universal health coverage, will result in a significant increase in contributions for high earners. Health Cabinet Secretary Susan Nakhumicha emphasized that the elderly, people with disabilities, and other vulnerable groups will have access to free services covered by the Kenya Kwanza administration.
During a church event in Kwanza Sub-county of Trans Nzoia, CS Nakhumicha mentioned that the government would cover the insurance for those who cannot afford the Sh300 contribution. Contrary to earlier promises of capping the deduction at a maximum of Sh5,000, the 2.75 percent deduction has not been limited, leading to substantial increases for top earners.
For salaried individuals earning up to Sh30,000 monthly, contributions will decrease by three percent to 45 percent. Those earning above Sh30,000 to Sh100,000 will experience a rise of one percent to 77 percent, while higher earners will face even steeper deductions. For instance, salaried workers earning Sh100,000 will see a 62 percent increase, paying Sh2,750 instead of the current Sh1,700. CS Nakhumicha stated that around 54 percent of Kenyans would contribute Sh300, with higher earners contributing more.
The Health CS highlighted ongoing public participation on new regulations aimed at ensuring access to personnel, medicine, and equipment in healthcare centers. The regulations will also cover individuals diagnosed with chronic illnesses through the ‘Emergency Chronic and Critical Fund.’ CS Nakhumicha hinted at reforms in the Linda Mama program to include coverage for families, encompassing children and husbands.
She emphasized that the new regulations would address limitations observed in the National Health Insurance Fund (NHIF) by prioritizing equitable access to affordable and comprehensive healthcare services for all Kenyans. SHIF is part of a broader healthcare reform package, including the Digital Health Act, Primary Health Care Act, and the Facility Improvement Financing Act.
Dr. Robert Pukose, Chairperson of the National Assembly Committee on Health, stated that Kenyans would continue making contributions to NHIF until December. A transitional committee has been formed to handle the shift from NHIF to SHIF.
