Petition filed challenging President Ruto’s new health law

A petition has been filed in court challenging the newly enacted Social Health Insurance Act.

The petitioner, Dominic Oreo, argues that the mandatory 2.75 percent from employees is excessive on Kenyans who are already burdened with taxes and deductions.

Mr. Oreo argues that the new Act is unclear, adding that it does not provide mechanism and reliable ways to identify members.

“This means that testing is error-prone, with some undeserving individuals being classified as poor, while some deserving poor are excluded,” reads court papers.

He further argues that it's unclear how the health scheme will be financed through premium contributions which are unreliable for healthcare resource mobilization in a country with substantial poverty.

He says that the law fails to articulate ways to collect revenue from the informal sector which are practical.

The petitioner further says that failure to transfer NHIF employees to the newly established fund is discriminatory and might lead to loss of jobs.

"The Act does not outline the role of county governments and the potential impact of the Act on counties,” he argues, urging the court to quash the Act.

The petition comes after President William Ruto on Thursday signed four Universal Health Coverage (UHC) bills into law.

The four bills include the Primary Health Care Bill, Facility Improvement Financing Bill, Digital Health Bill and the Social Health Insurance Bill.

This now means that Kenyans employed in the formal sector will make a monthly contribution of 2.75 per cent of their salary capped at a minimum of Ksh.300 and a maximum of Ksh.5,000.

Speaking at the 60th Mashujaa Day celebrations held in Kericho County on Friday, President Ruto defended the move saying that every Kenyan will pay according to their income.

Ruto insisted that by enacting the four bills into law, healthcare access will no longer be determined by financial capacity but rather by the healthcare requirements of every Kenyan.

"Previously, an individual earning Ksh.10,000 had to part with Ksh.500 to NHIF, a hefty 5% of their earnings. On the other hand, those with salaries of Ksh.100,000 or more contributed Ksh.1,700, a mere 1.7% of their income. Astonishingly, even someone with a monthly income of Ksh.1 million, paid the same amount," said President Ruto.

"This bizarre setup meant that low-income earners were effectively subsidizing high-income earners. The Social Health Insurance Fund also signifies a shift to increased use of domestic resources for health financing and a sustainable approach, especially at a time when resources from donors and development partners are dwindling."