Over 44,000 firms have been put on the spot by the Ministry of Health over their failure to remit deductions towards the Social Health Insurance Fund (SHIF).
Medical Services Principal Secretary Ouma Oluga fired a warning to the employers who are said to owe the government billions of shillings, threatening the delivery of services by the State to citizens.
Speaking at the launch of a new digital health service system in Migori, PS Oluga revealed that the government would take action against employers who consistently fail to remit SHA deductions.
Currently, the statutory SHA contribution is 2.75 per cent of one’s gross or household income every month. The minimum payment currently stands at Ksh300 per month.
For salaried employees, the deduction is automatically taken from the monthly gross salary by the employer, who then remits it to the Social Health Authority. This is to be done by the ninth day of the following month.
While speaking on the new health system, the government said that it would be key in enhancing service delivery, easing payments, and reducing out-of-pocket costs.
At the same time, Oluga raised alarm over the flouting of SHA regulations by hospitals, revealing some health facilities were using unscrupulous means to get money from the government.
“We are going to do an audit to make sure that we go to those facilities, and look at the list of people you have treated and make sure you treated those people,” Oluga said.
“You find that some hospitals that put their patients into SHA, treat them, but do not give medicines, and still end up claiming from the government. We are going to tighten the system,” he added.
The issue of SHA has recently grabbed national attention after the High Court struck out a petition challenging the mandatory deduction, citing that some of the issues raised were already before the courts.
In his decision, Justice Chacha Mwita struck out a petition filed by four doctors who contested the legality and fairness of the SHIF contribution system.
In their petition, the doctors argued that the deductions violated multiple constitutional guidelines, specifically taking issue with the mandatory registration of every Kenyan and the 2.75 per cent deduction.
After the court’s decision, Health Cabinet Secretary Aden Duale released a statement, assuring that the 2.75 deduction was well within the legal stipulations of Kenyan law.
