Blow to Ruto as High Court declares Social Health Insurance Fund (SHIF) unconstitutional
High Court declares new healthcare reforms Social Health Insurance Fund (SHIF) unconstitutional
High Court declares new healthcare reforms Social Health Insurance Fund (SHIF) unconstitutional.
In a ruling on Friday, July 12, by a three-judge bench, the judges gave Parliament until November 12, 2024, to amend the law establishing the fund.
This decision effectively halts the implementation of SHIF, a project designed to replace the beleaguered National Health Insurance Fund (NHIF).
The verdict, delivered on Friday, July 12, declared all laws enacted by Ruto’s administration to overhaul the health care system as “null and void.”
The court has also suspended any further actions undertaken under SHIF, including the ongoing registration.
Justices Alfred Mabeya, Robert Limo, and Fridah Mugambi, stated unequivocally, “A declaration is hereby issued that the entire Social Health Insurance Fund Act 2023, the entire Digital Health Act 2023, and the Primary Health Act 2023 are all unconstitutional and therefore legally null and void.”
“Within that period, the Acts shall remain suspended,” the judges asserted, sending the matter back to Parliament for rectification.
Lawmakers have been given until November 20 to amend the legislation.
The Social Health Insurance Act, No. 16 of 2023 (SHIFA), received presidential assent on October 19, 2023, and became effective on November 22, 2023, aimed to establish the Social Health Authority.
This body would manage social health insurance, fulfilling Article 43(1)(a) of the Constitution, which guarantees every citizen the right to health care services.
This ruling comes just 81 days before the scheduled rollout of SHIF, casting a shadow of uncertainty over the transition.
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Kenyans had expressed concerns that the July 1 deadline was too soon, indicating a lack of preparedness for the new health scheme. It was pushed to October 1.
SHIF was poised to replace NHIF, with all enhanced benefits schemes and packages under NHIF transferring to the new authority on the appointed day.
The NHIF Board was to wind up the Fund within a year of this date, transferring all cash balances and assets to the new authority.
Despite these plans, the judges’ ruling has halted any progress, requiring significant legislative amendments before SHIF can be implemented.
This ruling represents a significant setback for President Ruto’s administration, which had touted SHIF as a critical component of its healthcare strategy.
The government’s challenge now is to address the constitutional issues identified by the court while ensuring that the healthcare needs of the populace are met.
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