- SHIF aims to revolutionise Kenya’s healthcare system by ensuring equity and comprehensive coverage for all citizens, including those previously left out by NHIF
- Under SHIF, employees will contribute 2.75% of their income, affecting higher earners more significantly
- SHIF promises to tackle corruption and inefficiencies seen in NHIF by leveraging digital technology
- Unlike NHIF, where beneficiaries were required to produce NHIF cards, Kenyans will use their national identity cards to access health services
Muyela Roberto is a business journalist at TUKO.co.ke with over 9 years of experience in the digital media, offering deep insights into Kenyan and global economic trends.
The introduction of the Social Health Insurance Fund (SHIF) has fostered mixed reactions from many Kenyans, many full of expectations for a change others still yearning for more details about the transition.
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With challenging economic times, many residents believe that adding new taxes on their already strained salaries might be pushing the limit.
However, beyond the surface-level concerns about salary deductions, there is much more to understand about SHIF and its potential impact on Kenya’s healthcare system.
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Currently undergoing its first phase of rollout, SHIF envisions replacing the National Health Insurance Fund (NHIF), marking a pivotal shift in Kenya’s healthcare landscape.
So, what does the introduction of SHIF mean for Kenya’s healthcare journey and employees’ payslips? This article delves into the effects of SHIF on Kenya’s formal sector and how it differs from NHIF.
What is SHIF?
Kenya’s constitution guarantees everyone the right to proper healthcare by providing necessary services.
In 2023, the government introduced a bill to transform Kenya’s healthcare landscape and provide more affordable healthcare through SHIF.
The system aims to ensure equity and access to healthcare by covering everyone in the country, including those NHIF had left out.
Under SHIF, all workers are expected to contribute 2.75% of their income to the fund. The government will cover residents who cannot afford the contributions.
Self-employed or unemployed Kenyans who contributed KSh 500 monthly to NHIF will now pay KSh 300, based on their ability to contribute.
SHIF addresses basic healthcare services and provides a broad range of services to Kenyans across multiple medical fields, ensuring holistic healthcare coverage.
Why the shift from NHIF?
The NHIF is Kenya’s oldest government insurance scheme, providing quality and affordable healthcare for over 57 years. Despite this, the agency has primarily catered to the employed, leaving many in the informal sector or without jobs to fend for their healthcare needs.
Under NHIF, all salaried employees are required to have membership, with contributions deducted automatically from their salaries.
Premium contributions are calculated based on income class. In contrast, NHIF membership for the self-employed or informal sector workers is voluntary, requiring a specific monthly contribution to be eligible for services.
Despite numerous reforms, NHIF has struggled to bridge the gap in healthcare services. In 2014, only about 4.5 million Kenyans (11% of the population) were registered members. This is where SHIF aims to make a significant difference.
Impact of new SHIF deductions on employees
The new SHIF deductions will have several significant impacts on individuals in Kenya:
Cost of Healthcare
SHIF aims to make healthcare more equitable. Low-income individuals will pay less or access healthcare for free, alleviating the financial burden on those with limited resources while providing medical care access.
However, higher earners will see a more substantial portion of their income go toward SHIF contributions.
For instance, someone earning KSh 500,000 monthly will part with about KSh 13,750, which could be strenuous in tough economic times.
Access to healthcare services
SHIF aims to improve access to healthcare, particularly for low-income individuals. The expansive coverage will help employees access a broader range of healthcare services.
According to Social Health Authority (SHA) Chairman Timothy Olweny, each beneficiary will have access to an essential healthcare benefits package.
SHIF will incorporate various healthcare facilities into a primary care network, including public, private, and faith-based facilities accredited by SHA, ensuring individuals can access services where they are available.
Healthcare quality
Increased funding from SHIF could mean improved quality of care, facilities, and access to advanced medical technologies.
SHIF offers extensive healthcare coverage and support for chronic illnesses, encouraging individuals to seek healthcare and preventive services, leading to better public health outcomes.
Combatting corruption and enhancing transparency
One of the significant promises of SHIF is to combat corruption and inefficiencies that plagued NHIF.
Health Cabinet Secretary Susan Nakhumicha emphasised that SHIF will leverage digital technology to enhance transparency and accountability.
She acknowledged issues within NHIF, including typing errors and wrong entries, which undermined the fund’s integrity and efficiency. With SHIF being 99% digitised, manual interventions will be minimised, reducing opportunities for errors and corruption.
Enhancing maternity care
The government has unveiled a comprehensive plan to upgrade maternity care services under SHIF. This package aims to provide extensive coverage for various maternity-related services, ensuring better care for expectant mothers and their babies.
Streamlined access with national identity cards
From October, the government will eliminate NHIF cards, allowing Kenyans to access SHIF healthcare services using their National Identity cards.
This change aims to reduce the number of cards Kenyans carry and simplify the process of accessing healthcare.
Biometric verification will be implemented at hospitals to identify patients and eliminate loopholes for forged medical claims.
Ultimately, the introduction of the Social Health Insurance Fund (SHIF) represents a transformative step in Kenya’s healthcare journey.
While there are concerns about the new deductions, the potential benefits of more equitable healthcare access, improved quality of care, and reduced corruption cannot be overlooked.
As the SHIF undergoes its inception stage and moves closer to full implementation, it holds the promise of a more inclusive and efficient healthcare system for all Kenyans.
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Source: TUKO.co.ke