The Ministry of Health has issued a directive to all employers on the registration of employees with the Social Health Authority (SHA).
Health Principal Secretary (PS) Hillary Kimtai in a letter dated 19th July urged all employers to register their employees with SHA following the High Court ruling on 12th July 2024 regarding the Social Health Insurance Act.
In the ruling, the Court held that the Petition was meritorious and ordered that Parliament undertake sensitization and adequate public participation in accordance with the Constitution and amend the unconstitutional provisions of Social Health Insurance (SHI) Act.
SHA, through the Office of Attorney General, requested and was granted 45 days stay of execution of the Judgement to enable the Authority to explore the best possible solution.
The PS in his letter notified all employers that the status quo obtained before issuance of the Judgment remains during the 45-day period.
According to him, employers will continue to remit contributions at National Health Insurance Fund (NHIF) rates, and beneficiaries will access benefits in line with the NHIF Act up to 30th September 2024.
Employers Directed to Register Employees with SHA
Additionally, employers have a 45-day window effective from the day of the directive to comply, according to the PS.
“This is therefore to inform all employers that the status quo obtained before issuance of the Judgment remains during the 45-day period where employers will continue to remit contributions at NHIF rates and beneficiaries will access benefits in line with the NHIF Act up to 30th September 2024,” reads the letter in part.
“In view of the above therefore all Employers are urged to have their employees to register with the Authority (Social Health Authority) to enable seamless transition. Thank you for your continued partnership in financing the healthcare needs of our fellow countrymen.”
Also Read: Govt Gives Way Forward on NHIF After Court Ruling on SHIF
In the ruling, the Court held that the sensitization and adequate sufficient public participation be undertaken within 120 days from the date of the Judgement failure to which the Social Health Insurance Act, Digital Health Act and the Primary Healthcare Act would be declared unconstitutional.
The Social Health Authority had on July 24 provided clarity on the future of NHIF amidst a pending court ruling on the Social Health Insurance Fund (SHIF).
SHA Gives Way Forward on NHIF
SHA Chief Executive Officer (CEO) Elijah Wachira in a statement confirmed that NHIF services will remain accessible to all eligible members who have paid.
According to Wachira, the continuation through NHIF existing framework will ensure that there is no gap in health financing.
Also Read: Court Retracts Decision Made Against Implementation of SHIF
“Pending the lifting of the Court orders and within the 45 day-stay order period, the National Health Insurance Fund (NHIF) services will continue to be availed to all paid up and eligible members. The service continuation through NHIF existing framework will ensure that there is no gap in health financing,” the statement read in part.
“We want to reassure you that all NHIF obligations will be honored as per existing contracts with service providers and Fund members. All preparatory activities necessary to ensure the success of SHA will continue to be undertaken in tandem with the efforts to ensure full compliance with the Court orders.”
The government’s plan to roll out the new SHIF to replace NHIF suffered a blow after the Court declared it unconstitutional.
While delivering the verdict a three-judge bench constituting Justices Alfred Mabeya, Robert Limo, and Fridah Mugambi ruled that there was no public participation in coming up with the new healthcare program.
The judges further noted that there were disparities in the new Social Health Insurance Act since it would burden a few salaried individuals by creating a disparity in the contributions.
Starting 1st October 2024, it is envisioned that contributions will be 2.75% of the gross household in case of all residents in Kenya and they will access benefits in line with the SHI Act 2023.
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