The Social Health Insurance Fund (SHIF) was set to replace the National Hospital Insurance Fund (NHIF) from October 1, 2024.

This replacement brings on board a new format in salary deductions, with the new SHIF deductions set to be larger in comparison to the old NHIF deductions. Under the SHIF, all workers will be deducted 2.5 per cent of their salaries.

Under the SHIF deductions, Kenyans earning Sh. 100,000 will part with an additional Sh. 1,050. Kenyans earning a monthly salary of Sh. 200,000 will pay an extra Sh. 3,800 per month.

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Those who take home Sh. 450,000 will pay about Sh. 10,675 while those with a salary of between Sh. 800,000 and Sh. 1 million will cough up Sh. 20,300 and Sh. 25,800 respectively.

Those earning Sh. 20,000 will be deducted Sh. 550, while those earning Sh. 50,000 will pay Sh. 1,375 to the government scheme and those earning Sh. 100,000 will pay Sh. 2,750.

According to the Cabinet Secretary in the Ministry of Health Dr Deborah Barasa, the SHIF deductions are aimed at raising some Sh. 148 billion annually which will be used to used to fund the government’s Universal Health Coverage (UHC) project.

The deductions are mandatory and Kenyans will be required to register with the Social Health Authority (SHA) before being served at any public health facility.

Between July 1 and September 30, the government managed to register just 2 million people in the program.

According to CS Barasa, the government will deduct the normal NHIF payments of between Sh. 150 and Sh. 1,700 for employees and Sh. 500 for the self-employed for the last time in October this year.