Kenya’s Court of Appeal has given the green light to the controversial Social Health Insurance Fund (SHIF), overturning a prior ban. President William Ruto champions SHIF as a vital policy to offer affordable healthcare to all Kenyans, but it has faced criticism from those who view it as a new tax.
In Kenya, the Court lifts orders banning President William Ruto’s Social Health Insurance Fund. The roll-out of SHIF was halted in November 2023 by the High Court following an application by businessman Joseph Enock Aura, who challenged certain aspects of the scheme. The SHIF replaces the long-running National Health Insurance Fund (NHIF), which suffered corruption-related losses. On 19 January 2023, a three-judge bench lifted the ban, noting that the suspension posed a « real and present danger to the health rights of untold numbers of citizens’ ‘.
We are witnessing the tangible impact of our dedication to the welfare of the people. In this new era, we continue to transform our health system at the tertiary and secondary levels, focusing on necessity.
William Ruto, President of the Republic – Kenya
The court suspended the sections imposing compulsory enrolment in the scheme. Although workers are now required to pay 2.75% of their salary into the new health fund, the law does not address the situation of those who cannot afford to contribute.
We hereby suspend the orders of the High Court restraining the implementation and or enforcement of The Social Health Insurance Act, 2023, The Primary Health Care Act, 2023 and The Digital Health Act, 2023,Subsequently, there is a new form of what you’ll pay with the new SHIF rates effective immediately
Court of Appeal , Kenya
Critics argue that the 2.75% deduction is a substantial increase compared to what they paid to the NHIF, especially considering recent hikes in fuel prices and living costs. Concerns also linger about the allocation of funds, with fears that administrative expenses may overshadow direct healthcare costs.
