How government will determine 2.75% health insurance deductions for unsalaried Kenyans
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Factors government will consider to determine 2.75% health insurance deductions for unsalaried Kenyans in the informal sector
Factors government will consider to determine 2.75% health insurance deductions for unsalaried Kenyans in the informal sector.
Kenyans are getting ready for the Social Health Insurance Fund (SHIF) rollout, which is scheduled to start on Friday.
Under the new health program, all Kenyans, even those in the informal sector, will start making new contributions.
Kenyans in the informal sector must pay 2.75 percent of their household income annually, according to the Ministry of Health’s SHIF Regulations 2024.
To ascertain the suitable contribution, the government will investigate different homes in accordance with figuring out the amount payable.
The government will take into account three elements, which are referred to as means testing: the overall composition of the household, the housing characteristics, and the household’s capacity to obtain basic services.
The government will also consider other social and economic factors during the exercise.
As highlighted in the regulations, unsalaried Kenyans in the informal sector will make an annual minimum contribution of Ksh3,600.
“A household whose income is not derived from salaried employment shall pay an annual contribution to the Social Health Insurance Fund at a rate of 2.75% of the proportion of household income.
“The amount payable every month under sub-regulation shall not, in any case, be less than Ksh300 per month,” read the regulations in part.
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However, it is expected that the amounts payable for Kenyans in this category will fluctuate over time as the means testing exercise will be done regularly.
The annual deductions will be paid within 14 days after the expiry of the annual health insurance coverage.
Additionally, the regulations provided for these households to get financing to pay their contributions.
“The Authority, in collaboration with the Ministry for the time being responsible for cooperatives and micro, small, and medium enterprises development and other financing institutions, shall provide premium financing to non-salaried persons to enable them to pay their annual contributions within the intervals under which their income becomes available.
“Money paid on behalf of a contributor through premium financing shall be remitted directly to the Authority,” read the regulation in part.
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