December 5, 2024
High Court Rules On The Social Health Insurance Fund

High Court Rules On The Social Health Insurance Fund

The High Court has declared the Social Health Insurance Fund unconstitutional.

Justices Alfred Mabeya, Robert Limo, and Friday Mugambi issued their judgment, giving Parliament 120 days to amend the Act.

The three-judge bench ruled that parliament should ensure adequate public participation in accordance with the constitution before enacting the same act and amending the unconstitutional provisions.

“This should be done within 120 days. If they fail to, the Act shall remain suspended,” they said.

The court determined that the programme had burdened a few salaried individuals, resulting in disparities in contributions.

The Social Health Insurance Act, No. 16 of 2023 (SHIFA), which received presidential assent on October 19, 2023, and went into effect on November 22, 2023, sought to establish the Social Health Authority.

This body would manage social health insurance, in accordance with Article 43(1)(a) of the Constitution, which guarantees every citizen access to health care services.

This ruling comes just 81 days before SHIF’s scheduled rollout, casting doubt on the transition.

Kenyans had expressed concern that the July 1 deadline was too soon, implying a lack of readiness for the new health scheme. It was pushed to October 1.

SHIF was set to replace NHIF, with all enhanced benefits schemes and packages under NHIF being transferred to the new authority on the appointed day.

The NHIF Board planned to close the Fund within a year of this date, transferring all cash balances and assets to the new authority.

Despite these plans, the judges’ decision has halted all progress, necessitating significant legislative changes before SHIF can be implemented.

This decision is a significant setback for President Ruto’s administration, which had pushed SHIF as a key component of its healthcare strategy.

The government’s current challenge is to address the constitutional issues raised by the court while also meeting the population’s healthcare needs.

High Court Rules On The Social Health Insurance Fund

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