Why deductions for new health insurance has been pushed to July

 

Deductions towards the new Social Health Insurance Fund (SHIF) have been pushed to July, Health Cabinet Secretary Susan Nakhumicha has announced.

Kenyans were to pay 2.75 per cent of their gross pay to SHIF from March 1, 2024, in what will see contributions for top earners rise by more than eight times.

Speaking during a national validation exercise at the Kenyatta International Convention Centre (KICC) on Monday, Nakhumicha further announced registration of members with the new fund will take place between March and June 30.

Kenyans registered under the defunct NHIF will be required to register with the new scheme.

Salaried workers earning Sh100,000 will be paying Sh2,750, up from the current 1,700, representing a 62 per cent rise. Those drawing half a million shillings gross pay will see their deductions rise eight times to Sh13,750.

About 54 per cent of Kenyans will contribute Sh300 to the cover, with the rest of the higher earners paying more.

 “We intend to begin contributions at a rate of 2.75 per cent with a minimum payment of Sh300,” the CS noted.

Tharaka Nithi Governor Muthomi Njuki, who also chairs the Health Committee at the Council of Governors, said the devolved units should be incorporated into the transition process.

He urged the national government to streamline the rollout of the Primary Healthcare Fund to ensure that it benefits both the public and private sectors.

Nakhumicha said concerns raised by stakeholders will be addressed before presenting the regulations to the Parliament for approval.

The Social Health Insurance (General) Regulations, 2024 have been published to operationalise: The Social Health Insurance Fund (SHIF); the Primary Health Fund (PHF); the Emergency, Chronic, and Critical Illness Fund (ECCIF); Mandatory registration of every person resident in Kenya as provided for in the SHIFA; and mode of payment of contributions as provided for under the SHIFA.

These regulations are currently undergoing public participation and once approved, will be gazetted to operationalise the SHIFA.

The Primary Health Care Act of 2023 provides a framework for the delivery of, access to, and management of primary health care.

All persons resident in Kenya shall access healthcare services under PHIF and must have registered as a member of the SHIF.

SHIFA establishes the Social Insurance Authority, which will take over all the functions and operations of the Board of National Health Insurance Fund (NHIF).

BY  ALLAN KISIA