The Social Health Insurance Fund (SHIF) is scheduled to take over from the National Hospital Insurance Fund (NHIF) on October 1, 2024.
This transition introduces a revised structure for salary deductions, with the new SHIF deductions expected to be higher than those previously implemented under the NHIF.
Under the SHIF framework, all employees will contribute 2.5 percent of their salaries.
For instance, Kenyans earning Ksh 100,000 will incur an additional deduction of Ksh 1,050.
Those with a monthly income of Ksh 200,000 will see an increase of Ksh 3,800 in their deductions.
Individuals earning Ksh 450,000 will be subject to a deduction of approximately Ksh 10,675, while those with salaries ranging from Ksh 800,000 to Ksh 1 million will face deductions of Ksh 20,300 and Ksh 25,800, respectively.
For lower earners, those making Ksh 20,000 will have Ksh 550 deducted, while individuals earning Ksh 50,000 will contribute Ksh 1,375 to the government scheme, and those with a salary of Ksh 100,000 will see a deduction of Ksh 2,750.
Dr. Deborah Barasa, the Cabinet Secretary in the Ministry of Health, stated that the SHIF deductions are intended to generate approximately Ksh 148 billion annually, which will be allocated to support the government’s Universal Health Coverage (UHC) initiative.
These deductions are compulsory, and Kenyans must register with the SHIF before receiving services at any public health facility.
From July 1 to September 30, the government successfully registered only 2 million individuals in the program.
According to CS Barasa, the government will process the final NHIF payments, which range from Ksh 150 to Ksh 1,700 for employees and Ksh 500 for the self-employed, in October of this year.