There is uncertainty in Kenya over the future launch of its Social Health Insurance Fund (SHIF) as the High Court has suspended its earlier decision that declared it was unconstitutional.
The court had originally said last week that its judgement would not come into effect for another 120 days, but it has now suspended that decision.
The move may mean that the SHIF is on track to start operations in October, after experiencing previous delays
Once introduced, the SHIF would be similar in concept to the UK’s National Health Service, allowing citizens universal health coverage.
But the country has seen weeks of mass protests against tax increases, resulting in the deaths of more than 40 people. The BBC reported last week that Kenyan President William Ruto (pictured) had sacked most of his cabinet, following pressure from the protest movement which is largely coordinated online by young Kenyans.
The idea of more taxation for the SHIF may not be something that many Kenyans will tolerate at this point.
SHIF to replace NHIF
The SHIF was created last year to replace the National Health Insurance Fund (NHIF), which was itself created in 1966. But the NHIF was said to have suffered from corruption, and the loss of billions in taxpayer contributions.
According to the Kenyan Ministry of Health, under the SHIF scheme, “vulnerable populations will gain access to a broad spectrum of benefits, including screening, dialysis, kidney transplants, essential medications, and vital medical equipment.”
The Ministry previously said: “This milestone signifies a crucial step toward achieving Universal Health Coverage (UHC) and shifting the healthcare paradigm towards preventive and promotive practices.”
It added: “This milestone signifies a crucial step toward achieving Universal Health Coverage (UHC) and shifting the healthcare paradigm towards preventive and promotive practices.”
The law states that within 90 days upon the coming into force of the regulations, every person resident in Kenya shall apply to the Authority for registration as a member of the SHIF.
The SHIF act says that the SHIF will establish a pool of contributions. It will purchase healthcare services from healthcare providers and health facilities on referral from primary health facilities and pay for the provision of quality healthcare services to beneficiaries.
The SHIF will also receive funds appropriated by the National Assembly as contributions for indigents, vulnerable persons and persons under lawful custody.
Taxation rate
The registration process for the SHIF had already started.
Households whose income is derived from salaried employment shall pay a monthly statutory deduction contribution to the SHIF at a rate of 2.75% of the gross salary or wage of the household.
Households whose income is not derived from salaried employment shall pay an annual contribution also at a rate of 2.75%, but based on the proportion of household income as determined by a means testing instrument.
The rate is higher for most employed people than it is for the NHIF.
But the minimum amount payable every month shall not be less than KSh300 (£1.79).