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| President William Ruto (l) and CS Susan Nakhumicha |
The CS for Health, Susan Nakhumicha, has explained how the government will determine the amount of payments made by self-employed Kenyans to the Social Health Insurance Fund (SHIF). President William Ruto (l) and CS Susan Nakhumicha have championed the transition from NHIF to SHIF. The government’s challenge is how to collect contributions from the unemployed and self-employed Kenyans. Speaking on Citizen TV, Nakhumicha noted that it is easy to collect SHIF contributions from payroll workers because employers are expected to remit them at the end of the month.How the gov’t will determine income levels The CS explained that the government will consider an individual’s economic characteristics and behaviours to determine their level of income even though they are not in formal employment. She noted that by looking at someone’s watch or dress or other economic behaviours, the government will be able to estimate their income levels. How the gov’t will calculate 2.75% She explained that the government has developed a scientific tool that will help those not in formal employment to calculate their expected contributions. “We have people who are not in formal employment. They are in self-employment. So they have an income, and of course, they know how much they make. So we have a tool… a scientific tool that has been developed, and it is a self-testing tool. It is you saying I am in the informal sector. This is how much I make in a month, in a year, and therefore, my calculations for my 2.75% will be this much” Nakhumicha said. Over Tax Proposals She further explained that those who are jobless but have a form of income will also be required to declare their income and contribute 2.75% of the income to the SHIF. For those without income, the CS noted that they will have to declare zero income so that the government can take care of them. The CS called on Kenyans not to hide but instead contribute to the health scheme as the government will ensure a consistent benefit package for everyone.
by Elijah Ntongai