Govt Changes Date for New Mandatory Health Insurance Deductions
Kenyans are set to start making contributions to the recently established Social Health Insurance Fund (SHIF) starting from July 1, as the Ministry of Health has issued the final regulations. This development comes shortly after the initiation of the Affordable Housing levy.
As outlined in the Social Health Insurance (General) Regulations of 2024, starting from July 1st, citizens will be required to contribute 2.75% of their total earnings to the SHIF.
The ambiguity regarding when deductions would begin has been resolved by the release of these regulations, which also require member registration to be finalized by June 30th.
“Payment of contributions and access to healthcare services under the Act and these Regulations shall commence on the 1st July 2024,” the regulations assert.
This transition signifies the completion of endeavors to shift from the 57-year-old National Health Insurance Fund (NHIF) to the SHIF, with the goal of improving healthcare accessibility and effectiveness nationwide.
Health Cabinet Secretary Susan Nakhumicha, despite past inconsistencies in the scheduling of announcements, reiterated the timeline for implementation, stressing that services will commence from July onwards.
“Our projection is that we need three months to prepare ourselves. We need a digital system to do the registration and test it ahead of the official rollout on 1st July,” she stated in March.
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The previous month, President William Ruto encouraged citizens to enroll in the SHIF, showcasing his government’s dedication to achieving fair healthcare access under Universal Health Coverage (UHC).
“In this programme, even low-income earners will contribute, with the government covering those unable to pay,” President Ruto stated, highlighting the adoption of advanced technology to bolster accountability and curb corruption within the system.
In comparison, the SHIF brings about a revised contribution system, requiring all employees to allocate 2.75 percent of their salaries to the fund. This change removes the previous limit of Ksh1,700 imposed by the NHIF for those earning higher incomes.
In the updated plan, individuals making Ksh20,000 will now pay Ksh550, whereas those with earnings of Ksh100,000 or above will face a greater deduction of Ksh2,750. This represents a notable departure from the prior NHIF contribution rates.
Individuals who are not employed or deemed vulnerable will be required to make a monthly payment of Ksh1,000. Both national and county governments are tasked with providing assistance to those who are in need, covering their contributions.
Moreover, the SHIF requires compulsory contributions from all adults accessing government services, including non-citizens living in Kenya for over a year, demonstrating a thorough strategy for healthcare funding.
Govt Changes Date for New Mandatory Health Insurance Deductions