Wednesday, December 25, 2024

State rushes to deduct SHIF from your January salary

State rushes to deduct SHIF from your January salary

The Ministry of Health is in a rush to start deductions for the Social Health Insurance Fund (SHIF) from this month.

This comes barely a week after the Court of Appeal lifted a ban on the deductions that had been placed by the High Court.

According to a report that appeared in the Daily Nation on Monday, the government is planning to start the SHIF deductions from this month.

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Salaried employees will contribute 2.75 per cent from their salaries every month. The government has also set Sh. 300 as the mandatory minimum deduction for the unsalaried people.

Under the old new deductions, Kenyans earning a gross salary of Sh. 20,000 will part with Sh. 550. Previously, these Kenyans were being deducted Sh. 750.

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Kenyans earning a gross of Sh. 50,000 per month will be paying Sh. 1,375 up from Sh. 1,200 that they have been paying. Those earning Sh. 100,000 will be paying Sh. 2,750 up from Sh. 1,700 every month.

The decision by the Court of Appeal allowed for the rolling out of the Social Health Insurance Act, 2023, the Primary Health Care Act, 2023 and the Digital Health Care Act 2023.

“We think that given what has been sworn by the CS, there is a real and present danger on the health rights of countless citizens who are not party to the litigation pending before our courts,” the ruling by Court of Appeal judges Patrick Kiage, Pauline Nyamweya and Ngenye Macharia said.

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“We are persuaded that the confusion, the lacuna and risk and harm to citizens pending the hearing and determination of the appeal is a price too dear to pay and it would have the effect of rendering the appeal nugatory.”

The Court of Appeal however suspended three provisions of the Social Health Insurance Act pending the hearing and determination of the appeal.

These provisions include Section 26 (5), which makes registration and contribution a precondition for dealing with or accessing public services from the national and county governments or their entities.

Section 27 (4), which provides that a person shall only access healthcare services where their contributions to SHIF are up to date and active.

Section 47 (3), which obligates every Kenyan to be uniquely identified for purposes of provision of health services.

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