EXPLAINER: Inside New Proposed SHA Contribution Changes Affecting ALL Kenyans
Mumias East Member of Parliament Peter Salasya has moved to introduce a legislative proposal seeking to restructure the Social Health Authority (SHA) framework.
This includes introducing a flat monthly contribution for all Kenyans.
In a letter addressed to the Speaker of the National Assembly, Moses Wetang’ula, on Saturday, April 11, Salasya proposed amendments to the Social Health Insurance Act, 2023.
The legislator cites what he describes as deep operational and financial failures within SHA.
At the centre of the proposal is a shift from income-based annual contributions to a standard Ksh500 monthly contribution for all registered members.
The MP says the introduction of a flat rate contribution, as was the case under the defunct National Hospital Insurance Fund (NHIF), will be affordable and easy for everyone to contribute as required.
“SHA needs to be self-sustainable and not depend on exchequer funding by having a lot of money to support many Kenyans,” Salasya stated in the letter.
“The proposed legislative proposal, therefore, seeks to introduce a uniform and affordable monthly contribution framework where Kenyans will pay monthly contributions, instead of annual contributions, as they did under NHIF. This is through the introduction of a flat rate of premium of Ksh 500 per month for all persons,” read part of the letter.
According to Salasya, the current system has suffered from low compliance, with millions of registered members reportedly not making regular contributions.
His proposal states that, while about 29 million people are registered under SHA, only about 5 million are active contributors, raising concerns about the sustainability of the fund.
The legislator also called for the reinstatement of the Linda Mama programme, arguing that its suspension has worsened access to maternal healthcare and increased out-of-pocket costs for expectant mothers.
Also, Salasya is seeking to introduce voluntary contributions on behalf of another registered beneficiary or a national solidarity pool for indigent and vulnerable persons.
Another key proposal is the consolidation of the three existing funds into a single unified pool, a move intended to eliminate duplication and improve efficiency.
SHA currently manages the Primary Healthcare Fund, the Social Health Insurance Fund (SHIF), and the Emergency, Chronic, and Critical Illness Fund.
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The bill is also seeking to insert a new section in the act that requires the SHA to settle all verified claims submitted by hospitals within 60 days.
The proposal comes amid uproar over irregularities in sha with millions allegedly lost under the scheme. However, the Ministry of Health has dismissed the claims.
Currently, according to health ministry records, SHA has over 30 million registered members since its introduction in 2024.
In terms of contribution, salaried individuals are currently contributing 2.75 of their gross monthly salary, while those in the informal sector or with no income make a minimum contribution of Ksh 300.
EXPLAINER: Inside New Proposed SHA Contribution Changes Affecting ALL Kenyans
