Kenyan MPs Warn SHA Could Collapse Over High SHIF Contributions

Kenyan Members of Parliament (MPs) have warned that the recently established Social Health Authority (SHA) could collapse over unsustainable Social Health Insurance Fund (SHIF) contributions. Endebess MP Robert Pukose said the government should expand the number of SHIF contributors. Photo: Ministry of Health. Source: Twitter Why MPs raised an alarm on SHA The lawmakers asked the government to implement immediate changes to ensure the national health insurance programme’s survival. Despite having 20.2 million registered beneficiaries, Medical Services Principal Secretary (PS) Harry Kimtai told the National Assembly Health Committee that only 3.9 million people were actively contributing to SHIF. The National Assembly’s Departmental Committee on Health chaired by Endebess MP Robert Pukose was concerned about the low contribution rate despite the country’s high population, noting that the fund cannot survive without necessary action to increase the number of contributors. This emerged on Thursday, March 6, when PS Kimtai presented a report on the implementation status of the State Department for Medical Services for the first half of the 2024/25 financial year.

What MPs said about SHIF contributions In his critique of the current finance model, Pukose warned that the scheme was doomed to collapse if mandated contributions were not increased to accommodate more Kenyans. “This fund won’t become viable as the contributions are like a drop in the ocean. In the end, it will kill this fund. We need to look for ways to ensure that Kenyans make contributions to the fund. Is that sustainable? It’s a disaster waiting to happen,” Pukose of the ruling UDA Party lamented, as reported by Capital FM. READ ALSO Kenya’s Ministry of Health increases cancer care coverage by KSh 150k under SHA The committee’s vice chair, Patrick Munene (Chuka Igambang’ombe of UDA) questioned the contribution model. Medical Services PS Harry Kimtai said 3.9m Kenyans were contributing to SHIF.

He argued that many Kenyans would choose not to pay premiums because they might still receive free medical services after registration as beneficiaries. “Why should I pay the premiums if I can get level two and level three treatment for free just by registering? That’s all I have to do: register. Even for Emergency and Chronic Fund care, I have to pay right away to get treatment. Why should I pay?” he posed. When did SHA become operational? On Tuesday, October 1, 2024, the government launched SHA to replace the National Hospital Insurance Fund (NHIF). More than 7,000 healthcare providers have already been contracted to provide services, according to PS Kimtai. He cautioned hospitals demanding cash payments from patients that they could be blacklisted.

by  Japhet Ruto

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