The High Court in Nairobi has declared the Social Health Insurance Fund (SHIF) unconstitutional, null and void.
The three-judge bench delivered the verdict Friday following a petition which was filed challenging SHIF.
SHIF was to replace National Health Insurance Fund (NHIF) effective October 1, 2024 with deductions set at 2.75 percent.
The judges have granted Members of Parliament until November 20, 2024 to remedy the law establishing the fund.
Health CS Nakhumicha Fired
NHIF sent Kenyans message Friday morning, thanking them for being loyal to the Fund and that the new Fund, SHIF would take effect in October.
“Thank you for being loyal to NHIF. Effective October 1, your social health insurance fund will be provided by Social Health Authority. Please dial *147# to register.”
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Former Health Cabinet Secretary Susan Nakhumicha in a past interview said that the government would observe the economic characteristics of unemployed and self-employed Kenyans such as transactions on mobile money platforms to determine how they will pay the Fund.
“If you live in a grass house, it cannot be hidden. We will observe the economic characteristics of the unemployed to see how they will contribute,” said the former CS in June.
Nakhumicha was fired by President William Ruto alongside her other 21 CSs on June 11.
SHIF Delayed Rollout
Despite delays in the rollout, the mass registration began on July 1, 2024, as the government pushed the launch to October 1, 2024.
This is part of the government’s initiative to target all Kenyans to comply and register in the new Fund.
SHIF dictates those in formal employment to part with 2.75 percent of their salaries in monthly deductions while those in informal sector to contribute Ksh.500 monthly.
This differs from NHIF whereby, employees contribute between Ksh.1,400 to Ksh.1,700 monthly depending on their salaries and the employer matching the same.
At the same time, self-employed Kenyans made a voluntary contribution of Ksh.500.
