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Court of Appeal set to rule on State's new health insurance fund

President William Ruto during the signing into law four Universal Health Coverage Bills at State House Nairobi on October 19, 2023. (Photo: PCS)

By Amina Wako | Friday, January 19, 2024

If the court lifts the suspension, every household in Kenya will pay 2.75 per cent of its monthly income to the Social Health Insurance Fund.

Judges at the Court of Appeal are expected to deliver a ruling on Friday on the government's application to lift an order blocking the Social Health Insurance Fund (SHIF) rollout.

The focus will be on the Court of Appeal today, where judges are set to issue a verdict on the government's request to lift an injunction preventing the launch of the Social Health Insurance Fund (SHIF).

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President William Ruto's administration introduced the new fund as a replacement for the National Hospital Insurance Fund (NHIF).

However, its implementation was halted by the High Court, barely a week after Health Cabinet Secretary Susan Nakhumicha issued a Gazette notice operationalizing SHIF, awaiting a decision on a petition filed by Joseph Enock Aura.

Through her lawyer, Fred Ngatia, the Health CS moved to the appellate count on January 10 and pleaded with the court to lift the suspension.

The CS argued that suspending the fund would inflict suffering on Kenyans who would have otherwise benefited from SHIF.

In his submissions during the hearings, Lawyer Ngatia asked the judges to consider patients suffering due to the programme's suspension, which interfered with the government's plan to implement Universal Health Coverage (UHC) and provide quality and affordable healthcare for all Kenyans.

Monthly deductions

If the court lifts the suspension, every household in Kenya will pay 2.75 per cent of its monthly income to SHIF. The new deductions will be capped at Sh5,000, while those in the informal sector will pay Sh300.

As per the 2023 Social Health Insurance (General) Regulations, released by Health Cabinet Secretary Susan Nakhumicha, the monthly payment stipulated should stay within Sh300.

However, individuals without employment are required to make an annual payment. Consequently, unemployed individuals must bear the burden of paying a minimum of Sh3,600 each year, posing a significant challenge for many who live on a day-to-day basis.

Should Justices Patrick Kiage, Pauline Nyamweya, and Grace Ngenye Macharia reject the application, implementing the UHC plan will remain on hold.

President Ruto has repeatedly mentioned that his government will not relent on the SHIF rollout.

The President says the fund will be implemented at all costs, as he accused what he termed 'cartels' of sponsoring cases in court against the programme.

"We are not going to accept blackmail. Those sponsoring cases against UHC are beneficiaries of the NHIF," the president said last December Baringo during the Annual Kimalel Goat Auction.