Court deals blow to new health plan, declares SHIF unconstitutional

The rollout of the new comprehensive health plan by the government has suffered a blow after the High Court declared the Social Health Insurance Fund (SHIF) unconstitutional.

A three-judge bench constituting Justices Alfred Mabeya, Robert Limo, and Fridah halted the compulsory national insurance over the lack of public participation and disparities identified in the Social Health Insurance Act.

Consequently, the court has given Parliament 120 days to undertake public participation and amend the unconstitutional provisions in the Act.

Kenyans have already begun registration to comply with the planned shift from the National Health Insurance Fund (NHIF) to SHIF slated for October 1, 2024.

With the new plan, those in formal employment were to contribute 2.75 per cent of their salaries in monthly deductions while those in the informal sector Ksh 300 monthly.

President William Ruto has defended the new insurance fund saying it promises to revolutionize healthcare to realize the dream of universal Health Coverage (UHC), a key pillar of the country’s development agenda and an integral part of the Kenya Kwanza government’s Bottom-Up Economic Transformation Agenda (BETA).

The head of state explained that NHIF is limited leaving out millions of Kenyans without the ability to pay for hospital bills.

SHIF represents a shift from voluntary to compulsory health insurance, aligning with Article 43 of the Kenyan Constitution, which guarantees every citizen the right to the highest attainable standard of health.

A section of stakeholders had raised concerns over public awareness and technical readiness for the SHIF rollout.