September 1, 2023

Summary

To fund the grand health scheme, the government plans to increase deductions from the current range of Sh150 to Sh1,700 in the current NHIF to a flat rate calculated at 2.75 percent of gross monthly earnings.

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Employed Kenyans to pay more for new social healthcare fund

Employed Kenyans to pay more for new social healthcare fund

Photo courtesy Hapa Kenya

President William Ruto has announced plans to make it mandatory for every household in Kenya to contribute 2.75 percent of its income to fund a new social healthcare fund.

The new social healthcare fund is part of President Ruto’s plan to deliver Universal Healthcare (UHC). Under the Health Insurance Bill, 2023, UHC will be modelled on three separate funds — one for preventive and primary health care, another for primary referrals and a third covering treatment of chronic diseases.

The Social Health Insurance Bill, 2023 establishes three new funds:

a) A Primary Health Care fund to cater to preventive & promotive primary care services at the community, dispensary, and health center levels;

b) A Social Health Insurance Fund that shall cover services such as primary referrals, secondary & tertiary services;

c) A Chronic Illness & Emergency Fund that provides for chronic illnesses like complications of diabetes, hypertension, cancer management, & emergency treatment,.

These funds are to be managed by a single board & secretariat, based on the proposed 2.75% deductions on household income from both formal & informal sectors.

The Social Health Insurance Bill, 2023 will also make it mandatory for all Kenyans to be members of the new social insurance scheme with the government taking at least 20 percent of the monthly pay from Kenyans earning Sh50,000.

To fund the grand health scheme, the government plans to increase deductions from the current range of Sh150 to Sh1,700 in the current NHIF to a flat rate calculated at 2.75 percent of gross monthly earnings.

Kenyans to pay more in taxes to the social healthcare fund

This means more deductions for salaried Kenyans, who have just been slapped with the (still contested) housing levy.

“The President’s commitment in the Kenya Kwanza manifesto was to employ & initiate payments for community health promoters & integrate preventive & promotive services. The Primary Health Care Bill 2023 establishes a framework, for the delivery of, access to, & management of primary health care.” Hussein said.

According to President Ruto, the new funding structure will allow vulnerable Kenyans to access medical care for free.

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