Home East Africa Kenya’s Court of Appeal Gives Green Signal to Controversial Insurance Scheme

Kenya’s Court of Appeal Gives Green Signal to Controversial Insurance Scheme

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A three-judge bench lifted the ban, emphasizing that the suspension posed a real and present danger to the health rights of countless citizens. However, the court has suspended some provisions of the legislation relating to the mandatory compulsory registration of the scheme

Kenya’s Court of Appeal has given the green light to the controversial Social Health Insurance Fund (SHIF), touted by President William Ruto as a vital policy to offer affordable healthcare to all Kenyans. The court overruled a prior ban imposed by the lower court. There is also public resentment against the new scheme since many felt that it was in the form of a new tax.

A three-judge bench lifted the ban, emphasizing that the suspension posed a real and present danger to the health rights of countless citizens. However, the court has suspended some provisions of the legislation relating to the mandatory compulsory registration of the scheme. The workers are now required to contribute 2.75% of their salaries to the new health fund. Also, the law does not address the situation of those unable to afford contributions. President Ruto assured that his government would cover the costs for such individuals.

The SHIF’s rollout was halted in November by the High Court following a petition from businessman Joseph Enock Aura, challenging certain aspects of the scheme. The SHIF replaces the long-standing National Health Insurance Fund (NHIF), which suffered from corruption-related losses.

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Critics argue that the 2.75% deduction is a substantial increase compared to what they paid to the NHIF. Concerns were also expressed about the allocation of funds, with fears that administrative expenses may overshadow direct healthcare costs