The government has reaffirmed that the 2.75 per cent statutory deduction to the Social Health Insurance Fund (SHIF) is legal and in line with Kenyan law, following a court decision that declined to hear a petition challenging the contributions.
In a statement issued on Monday, June 23, Health Cabinet Secretary Aden Duale said the deduction is grounded in the Tax Laws (Amendment) Act, 2024 and is legally recognised as a tax-deductible contribution. He added that the contribution supports key legislation under the Universal Health Coverage (UHC) framework, including the Social Health Insurance Act, the Digital Health Act, and the Primary Health Care Act.
“These laws are meant to guarantee equality, financial protection, and access to quality healthcare for all Kenyans,” Duale said.
The Cabinet Secretary’s remarks came after the High Court declined to hear a case filed by four doctors challenging the legality of the SHIF deductions. The petition argued that the compulsory registration of all Kenyans and the 2.75 per cent deduction violated the Constitution, including rights to privacy, equality, and protection of property. The doctors claimed that deducting from post-tax income amounted to unfair double taxation.
However, Justice Chacha Mwita struck out the petition on grounds that similar issues were already being addressed in other ongoing court proceedings, including one filed by Busia Senator Okiya Omtatah. The judge said allowing the matter to proceed could lead to conflicting rulings.
The SHIF system requires all working Kenyans to contribute 2.75 per cent of their gross or household income, with a minimum monthly payment of Sh300. The deductions are meant to fund affordable healthcare for all under the government’s UHC plan.
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