JULY 2024 – KENYA
SOCIAL HEALTH INSURANCE FUND (SHIF)
It is important that employers note the following:
Latest update on SHIF implementation
Kenya’s Social Health Insurance Fund implementation has once again been postponed. Consequently, contributions are now anticipated to start in October 2024.
The previous update on the implementation date was published in our CRS News Flash of 11 April 2024. The commencement date was moved from 1 March 2024 to 1 July 2024 to allow additional time for planning and consultation.
On 12 July 2024 the High Court declared the fund unconstitutional, concluding that the initiative had caused an imbalance in the contribution by burdening a small number of salaried individuals. Parliament has been given 120 days to make amends to the Social Health Insurance Act. The Act will remain suspended if this deadline is not met.
This postponement is a result of continuous efforts to guarantee a seamless transfer from the National Health Insurance Fund (NHIF) to the SHIF that takes into account the concerns of all parties involved. The government is still working to improve the new system’s effectiveness and efficiency by modifying the rules and taking suggestions into consideration.
Employers are hereby notified of the continuation of the usual NHIF contributions. CRS will continue to monitor the situation closely and provide updates as more information becomes available.
