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Home » News » Taxpayers hold their breath as Court of Appeal set to rule on new health scheme

Taxpayers hold their breath as Court of Appeal set to rule on new health scheme

Last updated: March 15, 2024 11:32 am
Jessicah Mwambia 2 years ago
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Today, the Court of Appeal holds the key to unlocking the future of healthcare in Kenya, as it prepares to rule on the government’s appeal to reinstate the Social Health Insurance Fund (SHIF).

This ambitious initiative, championed by President William Ruto, aims to replace the National Hospital Insurance Fund (NHIF) and provide universal healthcare coverage.

However, its rollout has been stalled by a High Court order triggered by a petition, raising crucial questions about accessibility, affordability, and the historical struggles for equitable healthcare in Kenya.

For decades, Kenyans have grappled with fragmented and inequitable healthcare systems. While the NHIF offered some coverage, affordability and accessibility remained major hurdles, particularly for the informal sector.

The dream of universal healthcare, enshrined in the 2010 Constitution, has remained elusive, prompting successive governments to seek solutions.

The introduction of SHIF in 2023 marked a dramatic shift. Replacing NHIF with mandatory contributions from all households, regardless of income, promised wider coverage and potentially better services.

However, the path to implementation has been fraught with challenges. The High Court’s decision to suspend the rollout, citing concerns about legality and potential exclusion of vulnerable groups, has reignited anxieties about affordability and access.

Adding to the tension, the Court of Appeal’s decision carries significant weight. A ruling in favor of the government could pave the way for SHIF’s implementation, potentially revolutionizing healthcare access for millions.

It would also add more pain to salaried Kenyans who are already reeling from heavy taxes introduced by the Kenya Kwanza government.

The government is targeting to deduct 2.75 per cent of the gross salary of the over 3 million employed Kenyans to raise monies for the SHIF, with the minimum contribution capped at Ksh.300. There is however no capping on the maximum contribution.

This legal battle echoes past struggles for healthcare equity in Kenya. The 1970s saw the introduction of a mandatory health insurance scheme, but it ultimately failed due to administrative challenges and inadequate coverage.

In the 2000s, the NHIF was established, marking a significant improvement, but achieving universal coverage remained a distant goal.

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