- The Supreme Court ruled that Shif deductions were illegal, citing government discrimination against people working in the formal sector
- However, the Ministry of Health emphasized that there is no “free” in its presentation to the Court of Appeal
- The ministry said only 13 % of the people were carrying a heavy load of the new program's contributions, and therefore, traders must pay
The Kenyan Ministry of Health has said the loan process will be used to register Kenyans working in the informal sector to contribute to the Community Health Insurance Treasury (SHIF).
Source: Twitter
Why does the Ruto government emphasize the mandatory contributions of Shif
The ministry told the Court of Appeal that they (hustlers) could get the money needed for donations and make interest payments later.
In 2023, judges David Mananjanja, Christine Meoli, and Lawrence Mugambi of the Supreme Court decided that the payment was illegal, citing government discrimination against people working in the formal sector who make mandatory contributions.
According to the judges, the rule of Kenya first Alliance had appointed employed people as “simple beneficiaries,” for a new health plan.
Ministry of Health emphasizes no “No CA free”
However, the Ministry held that there was no “free” in its presentation. It explained that the government would cover the costs of children and the poor.
The Ministry stressed that traders in the informal sector must pay Shif or take a government loan to make contributions.
“The Supreme Court acknowledged the referee's claim that in order to obtain membership for all, certain restrictions and or forced were important that 'free operators' in the informal sector could be announced by the community health insurance treasury even if they do not have much need for treatment to save lives, ” The ministry said, as reported by The Standard.
The ministry argued that the Supreme Court recognized that the National Health Insurance Fund (NHIF), the precursor to Shif, was not sustainable because individuals in the formal sector contributed 83% of NHIF and received 69% of the benefits, while those in the informal sector received 227%.
It added that only 13% of people carrying a heavy load of contributions to the new program.
“Health Minister Deborah Barasa emphasized the need for creative health funding strategies, including Shif and Emergency, chronic, and essential disease (ECCIF), to address funding limitations and maintain health care,” the ministry said.
Health Minister Deborah Barasa wants Shif funding gaps to be addressed.
Source: Twitter
Why did the government change from NHIF to Shif?
The government introduced Kenyan registration for Shif membership in July 2024.
President William Ruto He said the program would address all kinds of diseases, including cancer, blood sugar and high blood pressure, among others.
He had made sure that no Kenyan would have to pay for the service as soon as the universal health plan (UHC) was started.
He said Shif aims to revolutionize the health care system in Kenya by ensuring the equality and comprehensive service to all citizens, including those who have previously left NHIF.
What to know about Shif
The government officially launched a new health insurance program in October 2024.
Kenyans raised concerns about poor benefits under the new program.
The new model cuts 2.75% of the total salary, with Kenyans receiving the same benefits regardless of their contribution.
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