As Kenyans gear towards the rollout of the Social Health Insurance Fund (SHIF), which is set to commence on Friday, all Kenyans, including those in the informal sector, will begin making fresh contributions under the new health scheme.
The Ministry of Health, in the SHIF Regulations 2024, stipulates that Kenyans in the informal sector will be required to pay 2.75 per cent of their annual household income.
In line with determining the amount payable, the government will conduct a study of various households to determine the appropriate contribution.
Referred to as means testing, the government will consider three factors: housing characteristics, the household's ability to access basic services, and the overall composition of the household.
The government will also consider other social and economic factors during the exercise.
Minimum Payment
As highlighted in the regulations, non-salaried Kenyans in the informal sector will make an annual minimum contribution of Ksh3,600.
"A household whose income is not derived from salaried employment shall pay an annual contribution to the Social Health Insurance Fund at a rate of 2.75% of the proportion of household income.
"The amount payable every month under sub-regulation shall not, in any case, be less than Ksh300 per month," read the regulations in part.
However, it is expected that the amounts payable for Kenyans in this category will fluctuate over time as the means testing exercise will be done regularly.
The annual deductions will be paid within 14 days after the expiry of the annual health insurance coverage.
Financing
Additionally, the regulations provided for these households to get financing to pay their contributions.
"The Authority, in collaboration with the Ministry for the time being responsible for cooperatives and micro, small and medium enterprises development and other financing institutions, shall provide premium financing to non-salaried persons to enable them to pay their annual contributions within the intervals under which their income becomes available.
"Money paid on behalf of a contributor through premium financing shall be remitted directly to the Authority," read the regulation in part.
