The Social Health Insurance Fund (SHIF), a key initiative of President William Ruto, aims to make healthcare more affordable and accessible for all Kenyans, replacing the longstanding National Health Insurance Fund (NHIF). NHIF underwent extensive reforms to improve its effectiveness and adapt to evolving healthcare needs. In 2021, NHIF introduced new contribution rates ranging from a minimum of Sh150 to a maximum of Sh1,700 for employed individuals.
SHIF aims to ensure that even the poor and those in the informal sector, who were previously excluded under NHIF, have equitable access to healthcare services. However, the rollout of SHIF was halted by the High Court in November following a petition by businessman Joseph Enock Aura. The Court of Appeal later lifted the suspension, emphasizing the importance of safeguarding the health rights of all citizens.
Under SHIF, all workers are required to contribute 2.75% of their salaries towards the new health fund, replacing the previous NHIF deductions. The contribution rates have been adjusted, with those earning higher salaries paying proportionately more. Additionally, unemployed individuals or vulnerable groups will pay a monthly contribution of Sh1,000, while both national and county governments will contribute on behalf of needy individuals identified by the State Department of Social Protection. The legislation also mandates mandatory contributions for all adults accessing government services, including foreigners residing in Kenya for over 12 months, who must enroll and contribute to the social health insurance scheme. Moreover, the government is obligated to establish community health units nationwide to ensure the provision of primary healthcare services at the grassroots level as part of the Universal Health Coverage (UHC) program.
