Court of Appeal allows October 1 rollout of Social Health Authority

Starting October 1, Kenyans will see a 2.75 per cent deduction from their monthly income as the rollout of the Social Health Authority (SHA) goes ahead, following a ruling by the Court of Appeal.

On Friday, the court lifted an earlier suspension that quashed the relevant health laws.

In its ruling, the appellate court supported the Ministry of Health's appeal, stating that it holds merit.

"In these complex circumstances, we are inclined to grant a stay as the High Court decision is reviewed by this court, pending an authoritative ruling on the validity of the three statutes," the court explained.

The SHA is set to replace the National Health Insurance Fund (NHIF), which has been in place for 58 years.

This transition is part of the Kenya Kwanza government's broader initiative to establish universal health coverage (UHC) in the country.

On July 12, 2024, a three-judge bench found two sections of the Social Health Insurance Act (SHIA), which established the SHA, unconstitutional.

Justices Alfred Mabeya, Robert Limo, and Freda Mugambi declared Sections 26(5) and 27(4) null and void.

These sections stipulated that individuals could only access health services if their contributions were up-to-date and required proof of compliance with registration and contributions.

The judges also criticised the legislation for lacking public participation.

They gave the government 120 days from the judgment date to rectify these legal breaches, warning that failure to do so would lead to the Act's suspension.

While staying the High Court's judgment, the appeals court noted, "We base this decision on the fact that these statutes have been in effect for nine months, and reverting to the old framework only to potentially return to the current one if the appeal succeeds would place this critical sector in a state of uncertainty."

The SHA will manage three funds to replace the NHIF: the Primary Healthcare Fund, the Social Health Insurance Fund (SHIF), and the Emergency, Chronic, and Critical Illness Fund.

Acting SHA CEO Elijah Wachira emphasised the importance of registration.

"Every Kenyan citizen, including dependents, is mandated by law to register as a member of the SHA," he said.

Members will contribute 2.75 per cent of their income to the SHIF, while the government will cover the costs for those unable to afford the premium.

"Payments received on or before October 9, 2024, will be credited to NHIF. Payments received from November 9, 2024, onwards will be credited to SHA," Wachira said.

President William Ruto this week appointed Dr Mohammed Abdi as the chairperson of the Social Health Authority, replacing Dr Timothy Olweny who had served in the position since November 2023.

In a Special Gazette Notice, the president explained that Mohammed's appointment, which is set for three years, would take effect immediately. Initially, Mohammed served in the authority as a member, tasked with implementing the Social Health Insurance Fund (SHIF) to provide UHC.

The appointment came as the government is seeking to roll out SHIF on October 1, 2024, replacing NHIF.

The deadline for the mandatory registration is set at September 30, 2024.