What happens to NHIF contributions as Kenyans migrate to SHIF?

The government is set to officially launch the new scheme on October 1, 2024, as it dissolves the 58-year-old National Health Insurance Fund (NHIF).

Kenyans have now put the new scheme, managed by the Social Health Authority (SHA), under harsh scrutiny due to the dismal benefits members will receive compared to the high contributions they will pay.

Of bigger concern is where the funds already contributed to NHIF will be deposited, prompting a response from Health Principal Secretary (PS) Harry Kimtai.

PS Kimtai allayed fears of funds disappearing as he told The Standard that the funds will also be transferred to the new scheme upon migration.

"No one needs to worry about losing even a single shilling with these changes. Every contribution will be accounted for and carried forward to SHA," he said.

"We shall check the balance then transfer to new contributions under SHA."

Disgruntled Kenyans even infiltrated virtual training sessions meant for public health officials on Friday to voice their dejections regarding the registration of the new health scheme, forcing the training session to be suspended.

In one of the recorded sessions, a member of the public was heard singing the famous activism song "Sitasimama maovu ya kitawala (I will not stand the evils of governance)."

Likewise, Kenyans have taken to various social media platforms to express their disappointment with the registration process, exposing faults they encountered.

MoH has not disclosed the number of registered Kenyans while ignoring the faults raised by Kenyans as a meeting scheduled for Friday, which was intended to provide an update ahead of the new health system rollout, failed to take place.

The meeting conveners were a no-show without explanation, raising more concerns about whether the rollout has hit a snag.

NHIF's management has also asserted that none of its employees will be laid off, noting that they will be handed over to their new employer.

“No employee will be fired; no employee will lose their job. After SHA finalizes its human resources framework, they will recruit those they need," said NHIF CEO Elijah Wachira. 

“If there are employment contracts with NHIF, they will automatically be transferred to SHA,” adds the NHIF CEO.

Wachira added that as of Friday, NHIF recorded around 1.9 million registrations.

Employers have been advised to register their staff members before October 1 and use the SHA employer portal through https://sha.go.ke/ to manage their staff's contributions.

An employer will first be required to create an account and verify their account.

They will then be needed to enter their employees' details and register them with SHA. 

All contributions, 2.75% of an employee's monthly pay, will then be remitted to SHIF.

On August 30, MoH released new tariffs for the benefits package in the new medical scheme.