Over 650,000 Kenyans will now be able to pay for the Social Health Authority (SHA) premiums using credit facilities after a deal was struck between SHA officials and the Kenya Tea Development Agency (KTDA).
The initiative targets more than 650,000 small-scale tea farmers across KTDA-managed factories, offering them an affordable pathway to health coverage under SHA, where they use loan options or financing agreements to borrow money to pay for their health premiums.
According to KTDA and SHA, the initiative is aimed at supporting the government’s Universal Health Coverage agenda while bringing affordable healthcare within close range for the farmers.
SHA officials, led by SHA Chairman Abdi Mohammed and CEO Dr Mercy Mwangangi, met with KTDA Group CEO Wilson Muthaura at the agency's headquarters in Nairobi on Thursday to finalise the rollout strategy.
Under the deal, the farmers will be paying for SHA in instalments via Greenland Fedha, KTDA's in-house microcredit institution.
“The partnership will allow farmers to pay SHA insurance premiums via credit facilities from KTDA’s Greenland Fedha,” the statement read in part.
Previously, many tea farmers had struggled to afford monthly insurance premiums, often relying on out-of-pocket payments or, in extreme cases, forgoing treatment entirely due to lack of funds.
The new model allows them to access care while repaying the premiums gradually, in line with their seasonal incomes.
“This marks a transformative national journey towards achieving Universal Health Coverage (UHC) through our visionary Taifa Care,” Dr Mwangangi said while hailing the move.
The KTDA-SHA deal introduces a new model of payment, the credit-based payment model, which is quite different from how Kenyans currently pay for health insurance under SHA.
Currently, employed Kenyans contribute 2.75 per cent of their gross salary monthly for SHA while unemployed Kenyans pay a flat rate of Ksh350 per month.
However, in the KTDA-SHA deal, instead of paying upfront, farmers can spread out the cost and repay gradually, aligned with their seasonal income cycles. This model is similar to the 'Lipa Pole Pole' approach introduced by President Ruto; however, the farmers are not borrowing from the Hustler Fund but from KTDA’s Greenland Fedha.
The model reduces the financial burden for the farmers and makes it easier for them to stay enrolled, even during low-income months. This partnership offers a flexible, farmer-friendly payment option that keeps them covered under SHA.
