Kenyans are gearing up to start contributing to the Social Health Insurance Fund (SHIF) in July 2024.
The announcement came from Terry Rotich, acting corporation secretary at the Social Health Authority (SHA), clarifying that contributions and access to healthcare under the program will kick off on July 1st, contrary to the earlier announced date of March.
Rotich emphasized that all Kenyans must apply to the authority for registration as SHIF members by June 30th.
She explained, “All persons in Kenya shall continue to pay their contributions to the repealed NHIF and receive services under the repealed NHIF… until all claims have been settled.”
Each household will contribute 2.75% of its monthly income to the new Social Health Insurance Fund (SHIF) beginning March this year. According to CS Nakhumicha, all laws and regulations are in place and deductions for the new scheme will begin in earnest. pic.twitter.com/Sn7bx5TqDN
— Kenya Insights (@KenyaInsights) February 25, 2024
Existing NHIF members will also need to register again with the authority to become members of SHIF, as the new scheme aims to replace the National Health Insurance Fund (NHIF).
The changes will remove the current maximum contribution limit of Ksh.1,700, which means employed Kenyans may face higher deductions.
Under SHIF, households with salaried income will pay a monthly statutory deduction of 2.75% of their gross salary, with a minimum payment of Ksh.300 per month.
This will result in increased contributions for many, with those earning higher salaries seeing the most significant impact.
For instance, those earning a gross salary of Ksh.50,000 will now pay Sh.1,375, up from Sh.1,200. Similarly, those earning over Sh.100,000 will contribute Sh.2,750, compared to the previous Sh.1,700.
High earners, with a gross income of Sh.500,000 or Sh.1,000,000, will face substantially higher contributions.
Non-salaried households will also contribute, based on 2.75% of their household income as determined by means-testing.
They must pay this annual contribution fourteen days before its lapse.
SHIF also offers provisions for beneficiaries to seek treatment outside Kenya under specific conditions, including compliance with SHIF Act sections and when treatment is unavailable locally but provided by a contracted healthcare provider.
Beneficiaries needing overseas treatment must request authorization from the authority by providing a referral.
These changes mark a significant shift in Kenya’s healthcare financing landscape, aiming to provide broader coverage and improved access to healthcare services for all citizens.
