Court Declares Social Health Insurance Fund Unconstitutional

The High Court Friday declared as unconstitutional the Social Health Insurance Fund (SHIF).

The fund replaced the National Hospital Insurance Fund (NHIF).

Justices Alfred Mabeya, Robert Limo and Friday Mugambi gave Parliament 120 days to make amends to the said Act.

This means the Parliament has until November 20 to make the amendments.

The three judge bench said Parliament should undertake adequate public participation in accordance with the constitution before enacting the same Act and amending the unconstitutional provisions.

“This should be done within 120 days. If they fail to, the Act shall remain suspended,” they said.

The government had instructed Kenyans to start registering for SHIF starting July 1, 2024, in preparation for the official transition.

SHIF requires individuals in formal employment to contribute 2.75 percent of their salaries through monthly deductions, while those in the informal sector are to contribute Sh300 monthly.

The government is targeting over 17 million youths who are not NHIF members.

This means that anyone over the age of 25, including the unemployed, will be required to pay SHIF.