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Home » News » Govt to start 2.75% SHIF deductions from March 1

Govt to start 2.75% SHIF deductions from March 1

Last updated: February 12, 2024 4:37 pm
2 years ago
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1 Min Read
Health CS Susan Nakhumicha
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Starting March 1, 2024, Kenyans will begin contributing 2.75 percent of their income to the Social Health Insurance Fund (SHIF), marking a significant shift in healthcare financing as the government presses forward with its controversial universal health coverage agenda.

Health Cabinet Secretary (CS) Susan Nakhumicha announced that under the Kenya Kwanza administration, the elderly, individuals with disabilities, and other vulnerable demographics will receive free healthcare services, with the government covering their insurance expenses.

The CS made this announcement while addressing attendees at a church event in Kwanza Sub-county of Trans Nzoia on Sunday.

“We have those who cannot afford Sh300. We have the elderly, people living with disabilities who cannot raise the monies… for this category, the government will cater for their insurance cover,” the CS stated.

Contrary to earlier assurances from various State officials, including the CS herself, the 2.75 percent contribution will not be capped at a maximum of Sh5,000. This means there will be a substantial increase in deductions for high-income earners.

Ms. Nakhumicha outlined that approximately 54 percent of Kenyans will contribute Sh300 towards the cover, while individuals with higher incomes will be subject to higher contribution rates.

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