Social Health Insurance Act comes into effect: Kenyan workers to take home less pay

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  • Health Cabinet Secretary (CS) Susan Nkhumicha gazetted the Social Health Insurance Act 2023 ahead of the Universal Health Coverage (UHC) rollout in January 2024.
  • The Act repealed the NHIF and established three new funds: the Social Health Insurance Fund (SHIF), the Primary Health Care Fund and the Chronic Illness and Emergency Fund.
  • The government will publish the new health insurance charges after the amount is decided by a team of experts assembled by Nkhumicha

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business and technology reporting, providing deep insight into Kenyan and global economic trends.

Kenyans will have to dig deep into their pockets to finance three new funds created under the Social Health Insurance Act.

The Social Health Insurance Act comes into effect.
Health CS Susan Nkhumicha (second from left) explains a point as President William Ruto (R) looks on. Photo: MOH.
Source: Twitter

Health Cabinet Secretary (CS) Susan Nkhumicha gazetted the Social Health Insurance Act 2023 ahead of the Universal Health Coverage (UHC) rollout in January 2024.

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The act officially took effect on Tuesday, November 22.

Nkhumicha said, “In exercise of the powers conferred by section 1 of the Social Health Insurance Act, 2023, the CS for Health designates November 22, 2023 as the date on which the Social Health Insurance Act, 2023 shall come into force ” ,

What funds were created by the SHI Act?

The Act repealed the National Health Insurance Fund (NHIF) and established three new funds: the Social Health Insurance Fund (SHIF), the Primary Health Care Fund and the Chronic Illness and Emergency Fund.

Public participation will be conducted from next week to gather citizens’ views on the new rules.

The Social Health Insurance Authority is set to replace the NHIF. All non-Kenyans resident in the country will be required to register as members.

Kenyans who do not register for SHIF will not be able to access government services.

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The government will publish the new health insurance charges after the amount is decided by a team of experts assembled by Nkhumicha.

President William Ruto had proposed a contribution of 2.75% of gross salary to the Social Health Authority.

How much will Kenyans pay for UHC?

Ruto said Kenyans will pay for UHC based on their income from January 2024.

“It is my intention that before January 1, 2024, we settle that conversation. That conversation should determine how much someone like the President gets paid and how much Mama Boga gets paid.

Payment of health insurance should be commensurate with people’s income so that those who cannot afford pay less or we as the government finance them,” Ruto said.

Source: TUKO.co.ke

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