NYERI, Kenya – Nyeri County has witnessed mixed reactions from its residents following the transition from the National Housing Insurance Fund (NHIF) to the new Social Health Insurance Fund (SHIF). This change marks the end of the 57-year-old NHIF scheme, with the SHIF aiming to revamp healthcare financing in Kenya.
According to Kenya News Agency, employed Kenyans will contribute 2.75 percent of their gross salary to the SHIF, mirroring the rate for non-salaried persons based on their earnings. The registration for the new medical scheme commenced last Friday, with deductions starting from March 1 of this year. The SHIF is built on three pillars: the Primary Healthcare Fund, the Social Health Insurance Fund, and the Emergency, Chronic, and Critical Illness Fund, all designed to ensure comprehensive healthcare access for all residents.
Lucy Migwi, a shop owner in Nyeri, welcomed the scheme as a significant improvement over the NHIF, citing limitations in the old system such as restricted capitation and lack of coverage for all medical conditions. Migwi hopes the new SHIF will address these issues, particularly for chronic conditions like kidney failure, which have left many without adequate care due to financial constraints. However, she also expressed concerns over the increased tax burden on Kenyans, which she believes could exacerbate the current economic challenges faced by small businesses like hers.
Echoing Migwi’s sentiments, Martin Luther, a local taxi operator, criticized the NHIF for its perceived bias towards the employed, leaving the unemployed and informally employed to bear a disproportionate share of healthcare costs. He supports the SHIF for its potential to offer equitable health coverage to all Kenyans, regardless of employment status.
On the other hand, businessman Titus Mwangi suggested that contributions to the SHIF should be family-based rather than individual for those not in formal employment, to alleviate the financial burden on low-income families.
The shift to the SHIF follows a legal battle where the High Court initially halted the rollout, a decision overturned by an appellate court which highlighted the urgent need for comprehensive health coverage. Under the SHIF, the contribution structure is tiered based on income levels, with those earning Sh20,000 contributing Sh550 monthly, and those with salaries of Sh100,000 and above facing deductions of up to Sh2,750, escalating with higher income brackets.
The transition to SHIF has sparked a significant debate among Nyeri residents, reflecting the broader national conversation on healthcare access and financial equity.