Uhuru CS Hits Out At The New Health Fund SHIF Noting ‘It won’t work.’
Mutahi Kagwe, former Health Cabinet Secretary, has sharply criticized the government’s plans to replace the National Health Insurance Fund (NHIF) with the new Social Health Insurance Fund (SHIF), claiming, “It won’t work.”
Kagwe questioned the need to shift the national health insurance system, claiming that insuring some government employees through private sector insurers could lead to the demise of SHIF.
He believes that public funds for health should continue to be channelled through the NHIF.
“I have never quite understood the necessity of the changes that happened because I have always believed that considering that insurance is based on probability and medical insurance more so than anything else. Money from the exchequer meant for health purposes should be channeled through NHIF as it were,” he stated.
Kagwe specifically criticized the National Police Service’s decision to use a consortium of insurers for their healthcare needs rather than the NHIF.
He argued that the Ksh8.67 billion contributed by police officers is critical for the national fund to serve more Kenyans.
“The reason why I believe that, for example, the police and other sectors of the economy should be part of the NHIF is because of the availability of health care across the country. If you tell a policeman today that he is secured by a private sector company and this policeman works in Kasipul Kabondo or in Mukurweinii area and the hospitals recognised by that private sector company do not exist in those areas, where do you expect a policeman to be served?” he questioned.
Kagwe further added, “When you put Ksh8 billion, the premium that comes from the police force and you put it in NHIF, that means that NHIF will have sufficient money to pay the hospitals that serve it. But if you separate and say, take the police to the private sector and then charge the Ksh6,000 that we have been trying to charge people and then use only that money to cover the rest of the country, it won’t work.”
Starting July 1, 2024, access to healthcare will be transferred to the new Social Health Authority (SHA) along with the SHIF, replacing the NHIF scheme, which has been in place for over 57 years.
Under the new system, each household will be required to contribute 2.75 percent of their income as a statutory deduction, with a lower minimum monthly contribution of Ksh300, down from Ksh500 previously required by the National Health Insurance Fund.
The fund is divided into four cost categories, which the government says will be funded both individually and publicly.
The former health secretary’s comments have sparked a heated debate about Kenya’s future national health insurance system.
While proponents argue that SHIF will provide more comprehensive and equitable healthcare coverage, critics such as Kagwe are concerned that the transition will disrupt access and financial stability.
Kagwe’s insights have resonated with many people who are concerned that decentralization of funds and reliance on private insurers will undermine the availability and quality of healthcare, particularly in underserved areas.
The government remains steadfast in its decision to implement SHIF, claiming that the new system will reduce inefficiencies and increase healthcare access for all Kenyans.
However, the success of this transition will be determined by its execution and ability to sustain robust funding.
Uhuru CS Hits Out At The New Health Fund SHIF Noting ‘It won’t work.’
