SHIF Launch: New Dates and Essential Details

The Kenyan government has announced the rollout of the Social Health Insurance Fund (SHIF),
set to replace the National Health Insurance Fund (NHIF) as part of its commitment to Universal
Health Coverage (UHC). Originally scheduled for an earlier launch, the SHIF registration began
on July 1, 2024, with the full implementation now slated for October 1, 2024.
Revised Timeline for SHIF Implementation
Despite the initial delays, the mass registration process for SHIF started on July 1, 2024. This
change in schedule allows the government additional time to ensure a smooth transition from
NHIF to SHIF, targeting full compliance by the revised launch date of October 1, 2024. This
initiative aims to register all Kenyans under the new health insurance framework.
Contribution Structure Under SHIF
Under the new SHIF scheme, formal sector employees are required to contribute 2.75% of their
monthly salaries. In contrast, those in the informal sector will pay a fixed monthly amount of Ksh.

500. This differs from the NHIF system, where contributions ranged from Ksh. 1,400 to Ksh.
     1,700 monthly, depending on salaries, with an equivalent employer match. Self-employed
     individuals previously made voluntary contributions of Ksh. 500.
     Mandatory Registration and Penalties
     The Social Health Act 2023 mandates that all Kenyans and foreign residents register with SHIF.
     Failure to register will prevent access to government services and incur a penalty of 2% of the
     amount due, accumulating monthly for each defaulted payment. Proof of compliance with SHIF
     registration and contribution will be required to access public services from national and county
     governments.
     Enforcement and Monitoring
     Health Cabinet Secretary Susan Nakhumicha highlighted that the government will monitor the
     economic activities of unemployed and self-employed individuals, including mobile money
     transactions, to determine their contributions. “If you live in a grass house, it cannot be hidden.
     We will observe the economic characteristics of the unemployed to see how they will
     contribute,” Nakhumicha stated in June 2024.
     Penalties for Non-Compliance
     Employers who fail to remit contributions face fines up to Ksh. 2 million or a three-year jail term,
     or both. Making false statements during registration to gain preferential treatment or benefits
     incurs fines up to Ksh. 1 million, 60 months imprisonment, or both. Misappropriation of Fund
     assets can result in a five-year prison term or a Ksh. 10 million fine, or both. Impersonation to
     obtain benefits is punishable by a Ksh. 1 million fine or a three-year jail term, or both.
     Healthcare Facilities Regulations
     Healthcare facilities that alter information to defraud the government face a Ksh. 2 million fine
     and risk suspension or removal from the list of contracted providers. Suspended facilities will
     have their names published in the Gazette and will cease receiving benefits from the Fund.
     Conclusion
     The revised timeline for the SHIF rollout reflects the government’s dedication to ensuring a
     comprehensive and smooth transition to the new health insurance system. With mass
     registration already underway and full implementation set for October 1, 2024, SHIF aims to
     provide universal health coverage for all Kenyans.
     By Eugyne Kwach.