Kenyans to Start SHIF Contributions in July 2024

Starting July 2024, Kenyans will commence their contributions to the Social Health Insurance Fund (SHIF), according to Terry Rotich, the acting corporation secretary at the Social Health Authority (SHA).

Rotich clarified that the payment of contributions and access to healthcare under the scheme will begin on July 1 instead of the previously announced date of March. All Kenyan residents are required to apply for registration as a SHIF member by June 30.

Current NHIF members must also register anew with the authority to become SHIF members. The SHIF aims to replace the National Health Insurance Fund (NHIF) and will eliminate the current maximum contribution limit of Ksh.1,700, resulting in higher deductions for employed Kenyans.

Under the revised plan, households with salaried incomes will make a monthly statutory deduction to SHIF at a rate of 2.75% of their gross salary, with a minimum monthly payment of Ksh.300. For instance, individuals earning a gross salary of Ksh.50,000 will contribute Ksh.1,375, compared to the current Ksh.1,200.

High earners will face increased contributions, with those earning Ksh.500,000 paying Ksh.13,750, up from Ksh.1,700, and those earning Ksh.1,000,000 paying Ksh.27,500.

Households without salaried incomes will make an annual contribution to SHIF based on a means-testing instrument, equivalent to 2.75% of their household income.

The SHIF allows beneficiaries to seek treatment outside Kenya under specific conditions outlined in the SHIF Act, including approval from the authority and the unavailability of treatment within the country. Requests for overseas treatment require a referral from the authority.

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