SHA chief executive officer Dr Mercy MwangangiThe Social Health Authority has clarified that Kenyans will not be charged any interest on its new flexible payment plan.
SHA chief executive officer, Dr Mercy Mwangangi, has said the initiative is not a loan but a structured credit facility that attracts no interest or hidden charges.
Under the new Social Health Insurance Act, Kenyans are required to make upfront annual contributions to the Social Health Insurance Fund.
But to ease the burden, Lipa SHA Pole Pole lets informal workers spread their payments over two years.
“This is not a loan. It’s not a credit facility. It is simply a structured way to fulfil your annual obligation flexibly," Mwangangi explained.
Once registered with SHA and vetted through a means test, a member pays the first four months upfront.
The balance, equivalent to 20 months, is paid gradually through M-Pesa Ratiba, daily, weekly or monthly, depending on one’s income flow. Direct payments are also accepted.
“The plan covers a two-year period. You pay the first four months upfront and the remaining 20 months through M-Pesa Ratiba (daily, weekly, or monthly) or through direct payments. If you miss a payment, the system retries automatically, and you can top up manually if needed."
Dr Mwangangi described the plan as a “game-changer”, saying it makes universal health cover realistic for millions of Kenyans whose incomes are unpredictable.
“It allows non-salaried Kenyans to pay their yearly SHA contributions in smaller, flexible instalments on a daily, weekly, or monthly basis, depending on their earning frequency. No interest. No hidden charges. No pressure,” she said.
President William Ruto officially unveiled the plan during the 62nd Madaraka Day celebrations on June 1, positioning it as a key pillar of the Bottom-Up Economic Transformation Agenda.
At that time, the government said Kenyans could also choose to pay their SHA premiums using the Hustler Fund. This means traders, boda boda riders and other informal workers can use mobile wallets they already have.
That facility was made possible through a strategic partnership between the Ministry of Health, the Ministry of Cooperatives and MSMEs, mobile network operators and financial institutions, through the Hustler Fund.
Yesterday, Mwangangi explained that annual payments – even when made in instalments – would help the Fund maintain predictable cash flow and end problems that dogged the defunct NHIF.
“Imagine running a household or business where income arrives sporadically and bills arrive consistently. Without reliable revenue, any attempt at planning collapses.
“The SHA is no different. The Fund can only function efficiently and with integrity if it has a clear understanding of its spending, without relying on guesses about who might pay next month,” she explained.
“Annual contributions are not an arbitrary requirement; they ensure that the Fund has enough muscle to pay hospital bills promptly, support preventive care and negotiate better services for all members.”
Mwangangi urged Kenyans to sign up by dialling *147# or *254# and start paying through M-Pesa Ratiba or direct deposits.
