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Government amends SHA policy to support informal sector contributions

Huldah Matara by Huldah Matara
November 6, 2024
in News
Reading Time: 2 mins read

The Kenyan government has introduced a temporary adjustment to the Social Health Authority (SHA) payment policy, allowing informal sector workers to make monthly contributions instead of an annual lump sum. This policy shift aims to ease the financial burden on non-salaried individuals and encourage broader participation in the newly established SHA.

Under recently gazetted SHA regulations, individuals without formal employment were initially required to pay a one-time annual premium to access healthcare services under the Social Health Insurance Fund (SHIF). The mandatory annual payment aimed to ensure consistency in funding and reduce payment defaults, which previously plagued the now-restructured National Health Insurance Fund (NHIF).

The shift to monthly contributions is expected to improve enrollment rates, particularly among workers in the informal sector, where irregular income often makes lump-sum payments challenging. Government representatives noted that this change could help sustain SHA’s funding model while still ensuring universal healthcare coverage. “This is an incentive for informal workers to join SHA, making it more accessible for those unable to afford a lump sum upfront,” said a government official at a media briefing.

Samson Kuhora, former NHIF CEO and now head of benefits design at SHA, highlighted internal measures to support compliance, including reminders sent three months and two weeks before contribution deadlines. “We understand the challenges of making a bulk payment, which is why there’s an option to pay monthly,” Kuhora explained. He also mentioned plans for an insurance premium financing option, expected to launch within three months, to further alleviate payment pressures.

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Despite onboarding 13 million Kenyans since October, SHA’s rollout has encountered obstacles. Some Kenyans have faced challenges accessing healthcare services due to technical issues, including frequent system failures and limited public awareness. In remote areas like Turkana County, many residents remain unaware of the new scheme, with local dispensaries still under-resourced and ill-equipped for SHA implementation.

Health Cabinet Secretary Deborah Barasa acknowledged these challenges but expressed optimism about SHA’s long-term impact. “This is a young system that we are committed to strengthening. Our goal is to ensure that every Kenyan, regardless of location, can access quality healthcare,” said Barasa. The Ministry of Health has pledged to address these gaps, working toward a seamless transition to SHA nationwide.

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Huldah Matara

Huldah Matara

Versatile multimedia journalist with a keen interest in compelling stories that resonate with my audience. Reach out on huldahmatara12@gmail.com

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