Confusion as RUTO’s Govt changes tune as it begins deducting mandatory SHIF from your salary this month instead of July

 Thursday, March 7, 2024 – The Government of President William Ruto has negated an earlier promise to start effecting Social Health Insurance Fund (SHIF) deductions in July 2024. 

Speaking during an interview, Health Cabinet Secretary Susan Nakhumicha explained that the government would require the deductions to be made beginning this March.

CS Nakhumicha remarked that the Ministry would gazette the SHIF regulations tomorrow to pave the way for employers to factor this in the March payroll.

“Once the regulations are gazetted, they come into effect so that means deductions begin end of March, 2.75 per cent of income,” she revealed. 

On February 26, the Ministry of Health had initially indicated that the deductions would start in July after all Kenyans were registered to the new system. 

Offering clarification, CS Nakhumicha remarked that from March, the government will need 90 days to prepare for the nationwide rollout of the universal health plan. 

As such, while deductions will start in March, Kenyans will not be able to access the benefits of the insurance scheme until July 2024. 

“We need about 3 months to prepare ourselves because we need a digital system to do registration, we need to test it and collect resources,” she explained the delayed access of benefits.

“Effective the new financial year which is July, now Kenyans can begin to access services under the Social Health Authority.”

While salaried Kenyans will have their deductions automatically deducted, unemployed Kenyans will be required to make a Ksh300 monthly contribution. 

Should the government ascertain that you cannot afford the Ksh300, the amount will be advanced in the form of a loan. 

The national government has partnered with financial institutions to offer loans for SHIF to be repaid once the Kenyan gains employment. 

The Kenyan DAILY POST