|FEBRUARY 2024 – KENYA
SOCIAL HEALTH INSURANCE (SHIF) and AFFORDABLE HOUSING LEVY
It is important that employers note the following:
High Court rulings affecting contributions to SHIF and the Affordable Housing Levy
Social Health Insurance to proceed
The UHC plan is supported by four health Acts. Our CRS News Flash of 16 November 2023 contains more information on the UHC plan.
One of the Acts, namely the Social Health Insurance Act, 2023 which repeals the National Health Insurance Fund (NHIF), established three funds. One of the funds relevant to employers and employees is the SHIF.
SHIF contributions are outlined in a draft of the Social Health Insurance (General) Regulations. These are:
The Ministry of Health plans to launch the new SHIF in March 2024. The Ministry states that appropriate procedures will be followed to ensure that individual registration begins in March 2024 and contributions are made in the same month after approval of the Act’s regulations.
Until the SHIF regulations are gazetted and put into effect, employers must continue to withhold and remit contributions in accordance with the prior NHIF regulations.
To view the draft Social Health Insurance (General) Regulations, 2023, follow the link.
Affordable Housing Levy (AHL) halted
However, in November 2023, the Kenyan High Court ruled that the housing levy was unlawful due to the absence of a comprehensive legislative framework, which is against the Constitution. The Kenyan government responded by filing an appeal with the Court of Appeal, requesting permission to keep collecting the fee. This means that the Kenyan High Court’s ruling that the levy was unlawful remains in effect.
A chronological timeline related to the AHL:
A notification alerting employers not to deduct the AFL was also released by the Federation of Kenya Employers.
To view the notice, follow the link.
CRS will continue to monitor developments in this matter and keep you informed of any changes or updates.
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