More pain on the payslip as Court of Appeal gives greenlight to SHIF levy deductions
Kenyans should brace for further deductions on their monthly salaries after the Court of Appeal overturned an order halting the implementation of the Social Health Security Fund.
The decision, delivered on January 19, 2024, followed an appeal by Health Cabinet Secretary Susan Nakhumicha.
The verdict implies the government has been given the go-ahead to deduct up to 2.75% from Kenyans’ salaries with the proceeds channeled towards funding the new social healthcare funding.
This comes at a time when Kenyans are being deducted the 1.5% of their gross salaries with the proceedings channeled towards the housing levy so as to build affordable houses.
In the latest ruling, the Court expressed concerns about the potential harm to citizens’ health rights due to the suspension.
It stated that the confusion and risks outweighed the delay in the appeal process.
As a result, the court lifted the orders restraining the implementation of the Social Health Insurance Act, 2023, the Primary Health Care Act, 2023, and the Digital Health Act, 2023.
“We think that given what has been sworn by the CS there is a real and present danger to the health rights of countless citizens who are not parties to the litigation pending before our courts. We are persuaded that the confusion, the lacuna and the risk and harm to citizens pending the hearing and determination of the appeal is a price too dear to pay, and it would have the effect of rendering the appeal nugatory,” the court said in its ruling.
The initial suspension, which occurred in November 2023, was a response to a petition by Joseph Enock Aura.
Cabinet Secretary Nakhumicha argued the suspension had created a vacuum and confusion in the health sector, especially since the National Health Insurance Fund (NHIF) had been replaced.
She emphasized that millions of patients relying on NHIF for treatment were facing difficulties accessing services. This, she claimed, was impacting the government’s plan to implement the Universal Health Coverage (UHC) program, hindering the provision of quality and affordable healthcare for all Kenyans.
As a consequence of these legal developments, there is growing concern that employees may experience a reduction in their take-home pay as the implementation of the Social Health Insurance Fund resumes. The lifting of the suspension could potentially lead to increased contributions or changes in health coverage plans, affecting individual’s dependent on the NHIF. The situation is evolving, and employees are advised to stay informed about any changes to their healthcare benefits.
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