Members of the National Assembly at the 2025 mid-term three-day retreat for legislators at Lake Naivasha Resort in Nakuru County on January 28, 2025.
Members of Parliament are calling for a review of the 2.75 per cent deduction of workers’ gross income towards the Social Health Insurance Fund (SHIF) citing poor services and unreliable system of the new scheme that has exposed Kenyans to untold sufferings.
The lawmakers point out that despite salaried Kenyans being deducted a lot of money, the services they get in return are not commensurate with the amount they are paying when compared to the now defunct National Health Insurance Fund.
In a chaotic session with Medical Services Principal Secretary Harry Kimtai, Social Health Authority (SHA) acting Chief Executive Officer Robert Ingasira and board chairman Abdi Mohamed that was marred with shouting and jeers, the lawmakers expressed their misgivings with the new health system over its ineffectiveness.
It is during the intense session on January 30 that speaker Moses Wetang’ula had to come in to steer the debate, pleading with the MPs not to attack the health officials unheard that Kabondo Kasipul MP Eva Obara proposed that there is need to review the 2.75 per cent deduction owing to the poor services that Kenyans have so far been subjected to.
“Having tested the system, we need to reduce the 2.75 per cent of the gross income contribution because we have seen what it can do. The people with payslips are suffering. We cannot continue like this, we need to do something,” Dr Obara said.
“What is happening in my constituency is that there is no service despite people registering and having cards. The people are suffering,” she said.
Dr Obara’s proposal has now gained support from some of her colleagues who complained of still being called to fundraisers in their constituencies to offset medical bills despite enhanced contributions to SHA.
Kitui Central MP Makali Mulu said despite MPs passing the law on the deductions, they have now seen its deficiencies and time is ripe for review.
“People, including Members of Parliament, are now realising that so much is collected from them but the services are not commensurate and they are saying it’s time for a review,” Dr Mulu said.
Dr Mulu explained that people are questioning the value for money of the new system saying salaried workers who are most affected by the deduction have been left with no disposable income.
“It’s now dawning on MPs that even though they passed the law, it’s time to review it so that we factor in these issues that have come up,” Dr Mulu said.
Cap on contributions
Although Dr Mulu did not give the percentage on the review, he said it’s high and should be reduced and put a cap on the contributions.
Kitui Rural MP David Mwalika, while supporting the review, said it should be reduced from 2.75 per cent to one per cent to cushion workers whom he said are already overtaxed.
Alternatively, Mr Mwalika says the government can also explore the option of increasing the Value Added Tax (VAT) from 16 to 17 per cent so that 0.5 per cent can go towards funding the universal healthcare system while the remaining 0.5 percent can be used towards the affordable housing project.
“With this, all Kenyans will contribute towards the scheme without those working feeling the pain,” Mr Mwalika said.
“It’s time to review it, it’s not worth 2.75 per cent that is being deducted. Why should the government overtax the people just because they are employed?” he asked.
Mr Mboni decried that despite MPs being deducted between Sh27, 000 to 35,000 to SHA, which he said they are not using because they have private insurance, the poor are still not benefiting from the contributions derived from the lawmakers.
“Why should I be deducted Sh360, 000 per year for something that I'm not going to use? It’s okay, they are telling us that those who cannot contribute will benefit, which is okay but they are also not benefiting and are still coming to us for help, they are still being turned away in hospitals,” Mr Mboni said.
Kitutu Masaba MP Clive Gisairo said they expected the new system to be better than NHIF but the glaring inefficiencies witnessed so far calls for a review of the new system.
“I don’t have a problem being deducted Sh30, 000 or even Sh50, 000 so long as my constituents can access quality services. But despite deducting me Sh30,000, I’m still being called upon to contribute to medical appeals. What then is the purpose for the new system?” he said.
The legislator added: “There is no point, take me back to where I used to contribute Sh1,700 then leave my Sh30,000 I continue giving out for medical appeals.”
Mr Gisairo wondered that if the system can fail at Kenyatta National Hospital (KNH), the country’s largest referral facility, what about the Level 1 and Level 2 facilities that are visited by many people seeking medical care.
“If the system is not working at the referral hospital which is at the heart of the country, where else is it working?” he said.
Marakwet West MP Timothy Kipchumba Toroitich said Kenyans must get value for money in the new system.
“We are not against the system as long as it serves Kenyans and not frustrate them,” Mr Toroitich said.
Minority Whip Millie Odhiambo called for reverting to NHIF if the new system fails to completely work in the next six months.
Nation Africa has learnt that MPs will probe afresh the new Sh104 billion SHIF technology system amidst reports that it is not yet still fully in place.
“We understand they are using a different system. It is something that we must look into,” said an MP who attended the Naivasha retreat but who spoke in confidence.
The enactment of the Social Health Insurance Act 2023 saw the disbandment of NHIF and Social Health Authority created in its place to manage the three funds-primary healthcare fund, healthcare fund and emergency, chronic and critical illness fund.
The new health scheme is part of the Kenya Kwanza administration promise on the provision of the universal health coverage (UHC) in which it is seeking to provide quality and affordable healthcare for all Kenyans.
The SHA system which the government is banking on to transform the healthcare system in the country has been marred with controversies after the claims processing system failed.
Hospitals across the country have reported delays in pre-authorisation for surgeries and other critical procedures leaving many patients seeking treatment in pain or pay in cash.
Some health facilities have also pointed out that they are forced to wait weeks for claims to be processed.
