Non-salaried Kenyans will be granted access to loans by the government to pay for the mandatory Social Health Insurance Fund (SHIF).
The draft Social Health Insurance (General) Regulations, 2024, requires all Kenyans to pay for the SHIF, whether employed or not, to enable universal health access.
In the new regulations, salaried Kenyans will be required to pay 2.75 per cent of their monthly gross income.
On the other hand, unemployed Kenyans will be required to offset 2.75 per cent on an annual basis.
To cushion the unemployed Kenyans, the government will offer loans to assist them in paying their annual contributions.
Kenyans.co.ke unravels the details behind the loan scheme.
How Does it Work?
The Social Health Authority (SHA) will collaborate with the Ministry of Co-operatives, Micro, Small, and Medium-sized Enterprises (MSMEs) and other financial institutions to provide loans to unemployed Kenyans.
This will help them pay their yearly contributions when their income is available.
The money paid on behalf of a contributor shall be remitted directly to the Social Health Authority (SHA).
Which Financing Institutions are Eligible?
The Authority will inform the members of the public on the premium financing products and the institutions listed.
How Will They Access the Health Cover?
The unemployed Kenyans will be required to pay for the insurance for a year before accessing the health cover.
What are the terms for repaying the loan?
Non-salaried Kenyans will be required to pay the amount 14 days before the lapse of the annual contributions of the beneficiary.
The interest rate for the loan has, however, not been specified.
What's the aim?
Through the scheme, the government aims to deter anti-selection.
Anti-selection is a process whereby individuals make payments to the insurance fund when they think their health risk is higher and neglect it when they are healthy.
According to the Ministry of Health, this was one of the major challenges facing the National Health Insurance Fund (NHIF).
In this case, non-salaried contributors made payments at least three months when they required a major medical need such as surgery and stopped paying after their needs were met.
Through the new scheme, the government aims to seal the loophole.
