Kenya’s Court of Appeal has granted approval to the contentious Social Health Insurance Fund (SHIF), overturning a previous prohibition.
President William Ruto advocates for SHIF as a crucial policy aimed at providing affordable healthcare for all Kenyans. However, the initiative has faced opposition from those who perceive it as a new form of taxation.
The High Court had suspended the rollout of SHIF in November following a petition by businessman Joseph Enock Aura challenging certain aspects of the scheme. The SHIF designed to replace the corruption-ridden National Health Insurance Fund (NHIF), saw its ban lifted by a three-judge bench on Friday. The court underscored that the suspension posed a “real and present danger to the health rights of countless citizens.”
Nevertheless, the court opted to suspend sections mandating compulsory registration for the scheme. While workers are now obliged to contribute 2.75% of their salaries to the new health fund, the law remains silent on the situation of those unable to afford such contributions. President Ruto has reassured that his government will cover the costs for such individuals.
Critics contend that the 2.75% deduction represents a significant increase compared to what individuals paid to the NHIF, particularly in light of recent escalations in fuel prices and living expenses. Concerns persist regarding the allocation of funds, with fears that administrative expenses may overshadow direct healthcare costs.
