Govt to Rollout Social Health Insurance Fund Beginning July 1

In a hurry? Here’s a quick summary…

• Kenyans will start contributing to the newly established Social Health Insurance Fund (SHIF) from July 1, with deductions of 2.75 percent of their gross salaries mandated by finalized Ministry of Health regulations.
• This transition from the National Health Insurance Fund (NHIF) to the SHIF aims to improve healthcare accessibility and efficiency, with President William Ruto highlighting the government’s commitment to Universal Health Coverage (UHC) and the adoption of advanced technology for accountability.

Starting from July 1, Kenyans are set to participate in the newly established Social Health Insurance Fund (SHIF), as announced by the Ministry of Health after the issuance of final regulations. 

This development comes just months after the initiation of the Affordable Housing levy. 

According to the Social Health Insurance (General) Regulations, 2024, citizens will be required to contribute 2.75 percent of their gross salaries towards the SHIF, effective from July 1. 

The publication of these regulations, along with the mandate to complete member registration by June 30, has dispelled uncertainties surrounding the commencement of deductions.

This transition signifies a significant shift from the 57-year-old National Health Insurance Fund (NHIF) to the SHIF, with the aim of improving healthcare accessibility and efficiency nationwide.

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Health Cabinet Secretary Susan Nakhumicha confirmed the implementation timeline, stressing that healthcare services will be accessible from July onwards, following preparations including the establishment of a digital registration system.

President William Ruto has urged citizens to register for the SHIF, underscoring the government’s commitment to ensuring equitable healthcare provision through Universal Health Coverage (UHC). 

The President emphasized the incorporation of advanced technology to enhance accountability and tackle corruption within the healthcare system. 

The SHIF introduces a revised contribution structure, where all workers will contribute 2.75 percent of their salaries towards the fund, eliminating the previous NHIF cap of Ksh1,700 for higher earners.

Under the new scheme, individuals’ contributions will vary based on their income level. For instance, those earning Ksh20,000 will contribute Ksh550, while higher earners with salaries of Ksh100,000 or more will have a deduction of Ksh2,750. 

This represents a significant departure from the previous NHIF deductions. Additionally, contributors not employed or classified as vulnerable individuals will be required to pay a monthly contribution of Ksh1,000. 

The national and county governments will be responsible for covering contributions for needy citizens.

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Moreover, the SHIF mandates mandatory contributions for all adults seeking government services, including foreigners residing in Kenya for more than 12 months, demonstrating a comprehensive approach to healthcare financing.