The Ministry of Health retracted its earlier commitment to commence deductions for the Social Health Insurance Fund (SHIF) in July 2024.
Health Cabinet Secretary Susan Nakhumicha, while speaking in an interview with one media outlet on Wednesday, March 6, clarified that the government now intends to initiate the deductions starting March.
CS Nakhumicha announced that the Ministry would officially publish the SHIF regulations in the gazette on Friday, March 8, to facilitate employers in incorporating these deductions into the March payroll.
She disclosed that once the regulations are gazetted, deductions, totaling 2.75% of income, will commence by the end of March.
This reversal follows the Ministry’s previous announcement on February 26, where it had outlined plans to begin deductions in July after completing the registration of all Kenyans into the new system.
CS Nakhumicha provided further context, stating that the government requires a 90-day preparation period from March to implement the nationwide rollout of the universal health plan.
Despite deductions commencing in March, Kenyans will not immediately access the benefits of the insurance scheme until July 2024.
CS Nakhumicha attributed this delay to the need for adequate preparation, including the establishment of a digital registration system and resource collection.
Effective from the new financial year in July, Kenyans will gain access to services under the Social Health Authority. Salaried individuals will have deductions automatically processed, while unemployed individuals must contribute KES 300 monthly.
Those unable to afford this amount will receive it as a loan, repayable upon employment, facilitated through partnerships with financial institutions.
For those in the informal sector, access to government services will be contingent upon payment for insurance coverage. CS Nakhumicha emphasized that individuals in this sector will be required to pay annual premiums instead of monthly and clarified that interactions with government services necessitate payment for SHIF coverage.
