National

Big win for Ruto as court okays new health fund

President William Ruto. (Photo: PCS)

By Amina Wako | Friday, January 19, 2024

Court says the SHIF's suspension poses "a real and present danger to the health rights of countless citizens who are not parties to the litigation pending before our courts".

The Court of Appeal has lifted orders suspending the rollout of the Social Health Insurance Fund (SHIF), which President William Ruto's administration introduced to replace the National Hospital Insurance Fund (NHIF).

The verdict was delivered on Friday afternoon by Justices Patrick Kiage, Pauline Nyamweya and Grace Ngenye, who said the SHIF's suspension poses "a real and present danger to the health rights of countless citizens who are not parties to the litigation pending before our courts."

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"We are persuaded that the confusion, the lacuna and the risk and harm to citizens, pending the hearing and determination of the appeal, is a price too dear to pay, and it would have the effect of rendering the appeal nugatory...," the court documents say.

"We hereby suspend the orders of the High Court restraining the implementation and or enforcement of The Social Health Insurance Act, 2023, The Primary Health Care Act, 2023 and The Digital Health Act, 2023..."

The implementation of the SHIF Act was stopped last November following a petition by businessman Joseph Enock Aura, which prompted a petition at the appellate court by Health Cabinet Secretary Susan Nakhumicha, through her lawyer Fred Ngatia, on January 10. In his submissions during the hearings, Ngatia asked the judges to consider patients' suffering due to the programme's suspension.

Monthly deductions

The SHIF will cost every household in Kenya 2.75 per cent of its monthly income, with the deductions capped at Sh5,000, while those in the informal sector will pay Sh300.

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

However, individuals without employment are required to make an annual payment so they must bear the burden of paying a minimum of Sh3,600 each year, posing a significant challenge for the many who rely on daiy wages.

With Friday's ruling, the implementation of the Universal Health Coverage (UHC) will hold.

President Ruto has repeatedly mentioned that his government will not relent on the SHIF rollout. Accusing "cartels" of sponsoring cases in court against the programme, Ruto says the fund will be implemented at all costs.

"We are not going to accept blackmail. Those sponsoring cases against UHC are beneficiaries of the NHIF," the President said last December.