A three-judge bench has declared the Social Health Insurance Fund (SHIF) unconstitutional, null, and void.
This decision comes just months before the SHIF was set to replace the National Health Insurance Fund (NHIF) on October 1, 2024, with new deductions set at 2.75% of one's gross income.
Court's Verdict: A Call for Legislative Action
The ruling, delivered by Justices Alfred Mabeya, Robert Limo, and Fridah Mugambi, found that the SHIF Act violated key constitutional provisions.
They highlighted that the law was enacted without sufficient public participation and transparency, which are fundamental requirements under Kenyan law.
The bench noted that the government failed to conduct public participation for the new programme.
The judges added that there were disparities in the new Social Health Insurance Act since it would burden a few salaried individuals by creating a disparity in the contributions.
The bench also found that The Primary Health Care Act and the Digital Health Act were also unconstitutional.
Understanding the SHIF: What Was at Stake
The SHIF was designed to overhaul the existing NHIF system, aiming to provide comprehensive health coverage for Kenyans.
The proposed deductions of 2.75% from gross income were intended to create a more robust funding mechanism to support universal health care.
However, the abrupt implementation and significant increase in contributions raised concerns among citizens and stakeholders alike.
The SHIF was envisioned as a critical component of President William Ruto’s Universal Health Coverage (UHC) agenda, which aims to ensure that every Kenyan has access to quality health care without financial hardship.
The transition from NHIF to SHIF was anticipated to streamline health insurance and enhance service delivery. Yet, the lack of transparency and public input has led to significant pushback.
Parliament now faces the critical task of revising the SHIF legislation to align with constitutional requirements.
Lawmakers will need to ensure extensive public participation and address the issues raised by the judiciary to avoid future legal challenges.