July 1, 2024

More pain for Kenyans as government proposes additional 2.75% salary deduction for UHC

3 min read
More pain for Kenyans as government proposes additional 2.75% salary deduction for UHC

Ruto government proposes additional 2.75% salary deduction for the Universal Health Coverage

Ruto government proposes additional 2.75% salary deduction for the Universal Health Coverage.

In an effort to gather funds towards achieving universal health coverage (UHC), the government of Kenya is once again recommending extra taxing measures on Kenyans.

The Social Health Insurance Bill (SHIF), 2023 which establishes the Social Health Insurance Fund that will take over from the National Hospital Insurance Fund (NHIF), will be used for preventive and promotive and primary care services at community, dispensary and health centre levels and build a chronic illness and emergency fund that provides for chronic illnesses has a raft of proposals that will rattle Kenyans.

The minimum contribution to the SHIF would be restricted at Ksh. 300, and the government plans to deduct 2.75 percent of the gross salaries of Kenya’s approximately 3 million employed citizens. 

However, there is no maximum contribution limit.

According to the government, the uniform contribution of Ksh. 1,700 made by every salaried Kenyan is unjust and favors those with greater incomes.

“We are changing the funding system so that we can allow the vulnerable to access NHIF free of charge and those who are in the lower category to pay less and those who earn more like me to pay more,” said President William Ruto.

Under the Social Health Insurance Bill, 2023, every household, a non-Kenyan citizen who has lived in Kenya for more than a year, the national government, the county government, and any other employer are required to make contributions.

A socioeconomic evaluation that will be done by community health workers across the nation will establish the annual contribution that will equal 2.75 percent of the household’s income for a household whose income is not obtained from employment.

Those classified as needy will be covered by the government through a Ksh.26 billion kitty.

“Na tunabadilisha mambo mengi so that we can make healthcare in Kenya not the privilege of the few who can afford it but the right of every Kenyan who requires medical care,” explained President Ruto.

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Every Kenyan will be required to register as a member of the Social Health Insurance Fund.

Other reforms include the Chronic and Critical Illness and Emergency Fund which will be publicly funded; it targets complications such as diabetes, hypertension and cancer management and emergency treatment and is anchored on Article 43 of the Constitution which states that no person shall be denied emergency medical treatment.

The fund covers the cost of management of chronic illnesses in case a patient depletes the Social Health Insurance coverage.

Another proposed Bill geared towards the achievement of Universal Health Coverage is the Primary Health Care Bill, 2023 which establishes a framework for the delivery and access to primary health care.

Through the Bill, 100,000 community health promoters will be hired and will be tasked with being the first point of contact for patients.

The Bill aims at improving service delivery at the primary health care levels that is dispensaries and health centres which will be catered for by the government through the exchequer.

The Bills are set to be tabled in Parliament for consideration.

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