A petition has been filed in court to challenge the recently enacted Social Health Insurance Act, with the petitioner, Dominic Oreo, expressing concerns about its impact on Kenyan citizens.
Oreo argues that the mandatory 2.75 percent contribution required from employees is excessive, especially for a population already burdened with taxes and deductions.
Mr. Oreo contends that the new Act lacks clarity and does not provide a reliable mechanism for identifying members.
Court documents state that this ambiguity can result in error-prone assessments, leading to undeserving individuals being classified as “poor” and deserving individuals being excluded.
Furthermore, Oreo raises questions about the reliability of financing the health scheme through premium contributions, especially in a country with significant poverty.
He argues that the law fails to outline practical methods for collecting revenue from the informal sector.
The petitioner also highlights a concern about the potential loss of jobs due to the Act’s failure to specify the transfer of NHIF employees to the newly established fund. He believes this omission may lead to discrimination and employment disruptions.
Oreo points out that the Act lacks a clear definition of the role of county governments and its potential impact on counties. He urges the court to nullify the Act, citing these concerns.
The petition follows President William Ruto’s signing of four Universal Health Coverage (UHC) bills into law. These bills include the Primary Health Care Bill, Facility Improvement Financing Bill, Digital Health Bill, and the Social Health Insurance Bill.
Under the new legislation, Kenyans employed in the formal sector are required to make monthly contributions of 2.75 percent of their salary, with a minimum cap of Sh300 and a maximum of Sh5,000.
President Ruto defended this move, asserting that it ensures healthcare access is no longer tied to financial capacity but is instead based on the healthcare needs of all Kenyan citizens.
Ruto also pointed out the disparities in the previous healthcare financing system, where low-income earners were disproportionately subsidizing high-income earners.
He emphasized that the Social Health Insurance Fund marks a transition toward greater use of domestic resources for healthcare financing, particularly as external resources from donors and development partners decline.
