More Pain For Kenyans As Gov’t Proposes Another 2.75% Salary Deduction
The government is set to impose additional taxation measures on Kenyans in an effort to raise funds that will be channeled towards the realization of Universal Health Coverage, a move that is likely to provoke public outrage.
The Social Health Insurance Bill (SHIF), 2023, which establishes the Social Health Insurance Fund that will take over from the National Hospital Insurance Fund (NHIF), will be used for preventive and promotive and primary care services at the community, dispensary, and health centre levels, as well as to build a chronic illness and emergency fund that provides for chronic illnesses, among other proposals that will terrify Kenyans.
The government intends to deduct 2.75 percent of the gross salaries of over 3 million employed Kenyans, with a minimal contribution of Ksh.300, to fund the SHIF. However, there is no utmost contribution limit.
The government argues that the Ksh.1,700 contribution made by every salaried Kenyan is unjust and favors those with higher incomes.
“We are changing the funding system so that we can allow the vulnerable to access NHIF free of charge and those who are in the lower category to pay less and those who earn more like me to pay more,” said President William Ruto.
Under the Social Health Insurance Bill of 2023, every household, a non-Kenyan resident residing in Kenya for more than one year, the national government, the county government, and any other employer are required to contribute.
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For households whose income is not derived from employment, there will be an annual contribution equal to 2.75 percent of the household’s income, as determined by a national socioeconomic assessment conducted by community health workers.
A Ksh.26 billion fund will be used by the government to assist those deemed to be in need.
“Na tunabadilisha mambo mengi so that we can make healthcare in Kenya not the privilege of the few who can afford it but the right of every Kenyan who requires medical care,” explained President Ruto.
Every Kenyan citizen will be compelled to enroll in the Social Health Insurance Fund.
Other reforms include the Chronic and Critical Illness and Emergency Fund, which will be publicly funded; it targets complications such as diabetes, hypertension, and cancer management, as well as emergency treatment, and is grounded in Article 43 of the Constitution, which states that no one shall be denied emergency medical care.
The fund covers the cost of chronic illness management in the event that a patient exhausts their Social Health Insurance coverage.
The Primary Health Care Bill, 2023, which establishes a framework for the delivery and accessibility of primary health care, is another proposed bill aimed at achieving Universal Health Coverage.
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Through the Bill, 100,000 community health promoters will be hired and tasked with serving as patients’ initial point of contact.
“We are going to equip our community health promoters, with the necessary equipment ili watusaidie kutambua magonjwa mapema, ndio tuyashughulikie mapema ndio tuwache kutumia pesa nyingi kwa matibabu sababu tumechelewa na ugonjwa,” Ruto stated.
The purpose of the bill is to improve service delivery at the primary health care levels, including dispensaries and health centres, which will be funded by the government via the exchequer.
The bills will be submitted to the Parliament for consideration.
More Pain For Kenyans As Gov’t Proposes Another 2.75% Salary Deduction