Salaried Kenyans are set to start remitting 2.75 percent of their gross salaries towards the Social Health Insurance Fund (SHIF) from July 1.
This announcement marks a shift from the initial announcement made by the Ministry of Health.
According to Timothy Olweny, the chairman of the Social Health Authority (SHA), this adjustment in the timeline is outlined in the final version of the Social Health Insurance (General) Regulations, 2024.
Additionally, the regulations stipulate that membership registration for the SHIF must be finalized by June 30.
Furthermore, the regulations state that the commencement of contributions and access to health services as per the Act will officially begin on July 1, 2024.
“Payment of contributions and access to health services under the Act and these regulations will commence on July 1, 2024,” read the regulations in part.
Nakhumicha Date Changes for SHIF Deductions
This adjustment follows a series of shifts in the announced timeline by Health Cabinet Secretary Susan Nakhumicha.
Initially, she had declared that SHIF deductions would commence in March, only to later postpone them to July before reverting back to March.
Nakhumicha, while speaking in February during a town hall interview in Kisumu, pointed out the necessity for adequate preparation before the implementation of SHIF.
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She explained that the ministry required approximately three months to prepare for the digital registration process and other logistical arrangements.
Consequently, she announced that after the gazette publication on Friday, March 9, the new deductions would come into effect.
“We gazette hopefully on Friday. Once they are gazetted, they come into effect, so that means deductions begin at the end of March. In terms of access to services, our projection is that from March, we need about 3 months to prepare ourselves because we need a digital system to do registration,” said Nakhumicha.
The transition to SHIF also involves a grace period during which Kenyans will continue contributing to the National Health Insurance Fund (NHIF) until December.
Dr. Robert Pukose, chairman of the National Assembly’s Health Committee, highlighted this transitional clause, explaining that NHIF contributions would cease by the end of the year, paving the way for SHIF to take over.
“We have a transitional clause that allows Kenyans to continue contributing to the NHIF for a period of one year. The NHIF fund will cease to operate in December this year and SHIF will take over,” Dr Pukose said.
Under NHIF, the contribution ceiling stands at Ksh1,700, with adjustments for certain top-earning categories.
However, under the new regime, non-salaried individuals paying Ksh500 monthly to NHIF will see a reduction to Ksh300.
Also Read: Govt Sets Deadline for Kenyans to Register Under SHIF
Despite the shifting timelines, the overarching goal according to the Ministry of Health remains the establishment of SHIF as a comprehensive healthcare financing mechanism in Kenya.
The new system the Ministry says aims to provide improved access to health services for all citizens, supported by a digital infrastructure for efficient registration and fund collection.
