MPs demand review of 2.75% SHIF deduction over poor services
MPs have launched a fresh probe into the Sh104 billion SHIF system, amid reports that its claims processing system is still not fully operational.
Members of Parliament have raised concerns over the 2.75 percent deduction on workers' gross income for the Social Health Insurance Fund (SHIF), calling for a review due to poor service delivery and system failures.
The lawmakers argued that despite Kenyans paying higher contributions under the new scheme, they continue to face challenges accessing medical services.
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In a heated session on Thursday, MPs clashed with Medical Services Principal Secretary Harry Kimtai, Social Health Authority (SHA) acting CEO Robert Ingasira, and board chairman Abdi Mohamed over the inefficiencies in the system.
Speaker Moses Wetang'ula had to intervene, urging MPs to allow the health officials to respond.
Kabondo Kasipul MP Eva Obara led calls for a review of the SHIF deductions, saying the system had failed to deliver quality healthcare.
"Having tested the system, we need to reduce the 2.75 per cent of the gross income contribution because we have seen what it can do. The people with payslips are suffering. We cannot continue like this, we need to do something," she said.
Other MPs supported the review, citing the continued struggles of Kenyans despite the higher deductions.
Kitui Central MP Makali Mulu said the law on deductions was passed without fully understanding its impact.
"People, including Members of Parliament, are now realising that so much is collected from them, but the services are not commensurate. It's time for a review," he said.
Kitui Rural MP David Mwalika proposed reducing the deduction from 2.75 per cent to 1 per cent to ease the burden on workers.
Alternatively, he suggested increasing Value Added Tax (VAT) from 16 per cent to 17 per cent with 0.5 per cent going towards healthcare and 0.5 per cent funding affordable housing.
"With this, all Kenyans will contribute to the scheme without those working feeling the pain," he said.
MP Vincent Musyoka Mboni criticised the high deductions, saying they were not benefiting the poor as intended.
"Why should I be deducted Sh360,000 per year for something that I'm not going to use? They tell us that those who cannot contribute will benefit, but they are still coming to us for help and being turned away in hospitals," he said.
Kitutu Masaba MP Clive Gisairo questioned the effectiveness of SHIF, stating that despite the increased contributions, MPs are still being called upon to assist constituents with medical bills.
"I don't have a problem being deducted Sh30,000 or even Sh50,000, so long as my constituents can access quality services. But despite deducting me Sh30,000, I'm still being called upon to contribute to medical appeals. What then is the purpose of the new system?" he asked.
The lawmaker further warned that if SHIF could not function at Kenyatta National Hospital, the country's largest referral facility, smaller hospitals would struggle even more.
"If the system is not working at the referral hospital, where else is it working?" he said.
Marakwet West MP Timothy Kipchumba Toroitich stressed that Kenyans must get value for their money. "We are not against the system as long as it serves Kenyans and does not frustrate them," he said.
Minority Whip Millie Odhiambo called for a return to the National Health Insurance Fund (NHIF) if SHIF fails to improve within six months.
Meanwhile, MPs have launched a fresh probe into the Sh104 billion SHIF system, amid reports that its claims processing system is still not fully operational.
Hospitals have reported delays in pre-authorisations for surgeries and critical procedures, forcing patients to either wait in pain or pay in cash.
The Social Health Insurance Act 2023, which disbanded NHIF and replaced it with SHA, was part of the Kenya Kwanza administration's plan to provide Universal Health Coverage (UHC).
However, the implementation has been marred by complaints of inefficiencies, leaving many Kenyans questioning the value of the new system.
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