More pain for Kenyans as Gov't proposes another 2.75% salary deduction

In what is likely to elicit uproar from members of the public, the government is yet again set to impose additional taxation measures on Kenyans as it seeks to raise monies that will be channelled towards the achievement of Universal Health Coverage.

The Social Health Insurance Bill (SHIF), 2023 which establishes the Social Health Insurance Fund that will take over from the National Hospital Insurance Fund (NHIF), will be used for preventive and promotive and primary care services at community, dispensary and health centre levels and build a chronic illness and emergency fund that provides for chronic illnesses has a raft of proposals that will rattle Kenyans.

The government is targeting to deduct 2.75 per cent of the gross salary of the over 3 million employed Kenyans to raise monies for the SHIF, with the minimum contribution capped at Ksh.300. There is however no capping on the maximum contribution.

The government argues that the blanket contribution of Ksh.1,700 by every salaried Kenyan is unfair and favours higher-income earners.

“We are changing the funding system so that we can allow the vulnerable to access NHIF free of charge and those who are in the lower category to pay less and those who earn more like me to pay more,” said President William Ruto.

Under the Social Health Insurance Bill, 2023, those liable to contribute are every household, a non-Kenyan resident residing in Kenya for a period exceeding one year, the national government, the county government and any other employer.

For a household whose income is not derived from employment, there will be an annual contribution matching 2.75 per cent of the household’s income that will be determined by a socio-economic assessment that will be carried out by community health workers across the country.

Those classified as needy will be covered by the government through a Ksh.26 billion kitty.

“Na tunabadilisha mambo mengi so that we can make healthcare in Kenya not the privilege of the few who can afford it but the right of every Kenyan who requires medical care,” explained President Ruto.

Every Kenyan will be required to register as a member of the Social Health Insurance Fund.

Other reforms include the Chronic and Critical Illness and Emergency Fund which will be publicly funded; it targets complications such as diabetes, hypertension and cancer management and emergency treatment and is anchored on Article 43 of the Constitution which states that no person shall be denied emergency medical treatment.

The fund covers the cost of management of chronic illnesses in case a patient depletes the Social Health Insurance coverage.

Another proposed Bill geared towards the achievement of Universal Health Coverage is the Primary Health Care Bill, 2023 which establishes a framework for the delivery and access to primary health care.

Through the Bill, 100,000 community health promoters will be hired and will be tasked with being the first point of contact for patients.

“We are going to equip our community health promoters, with the necessary equipment ili watusaidie kutambua magonjwa mapema, ndio tuyashughulikie mapema ndio tuwache kutumia pesa nyingi kwa matibabu sababu tumechelewa na ugonjwa,” Ruto stated.

The Bill aims at improving service delivery at the primary health care levels that is dispensaries and health centres which will be catered for by the government through the exchequer.

The Bills are set to be tabled in Parliament for consideration.