2.75% SHIF deduction begins this month – CS Nakhumicha

The CS said the Ministry of Health will gazette regulations on Friday, March 8.

In Summary

• The CS registration of members under the new fund which will replace the National Health Insurance Fund (NHIF) will begin immediately after the anticipated gazettement.

• According to Nakhumicha, all laws and regulations are in place and the Act is currently in the Attorney General's office awaiting its gazettement.

Deduction of the 2.75 percent levy for Social Health Insurance Fund will be effected this month, Health CS Susan Nakhumicha has disclosed. https://rb.gy/u9i1bl

Health Cabinet Secretary Susan Nakhumicha during the launch of the KEMSA Kisumu Regional Distribution Centre on March 6, 2024.
Health Cabinet Secretary Susan Nakhumicha during the launch of the KEMSA Kisumu Regional Distribution Centre on March 6, 2024.
Image: FAITH MATETE

Deduction of the 2.75 per cent levy for Social Health Insurance Fund will be effected this month, Health CS Susan Nakhumicha has disclosed. 

She said the levies will be gazetted by the ministry on Friday, March 8. 

The CS registration of members under the new fund which will replace the National Health Insurance Fund (NHIF) will begin immediately after the anticipated gazettement.

"It is no longer a story, but after Friday, after the regulations are accepted, we begin the journey of registration and we begin deductions of the 2.75 per cent to take care of the fund," the CS said.

The CS assured Kenyans that the ministry will put the money to good use.

Nakhumicha said pilferage of funds is going to be a thing of the past and that she will ensure optimal usage of resources.

According to Nakhumicha, all laws and regulations are in place and the Act is currently in the Attorney General's office awaiting its gazettement.

She said by March 1, 2024, her office had finalised working on all the regulations.

The regulations will operationalise funding for health care where every Kenyan will make a contribution to the scheme while the government will pay for poor Kenyans who won't be able to afford monthly membership fees of Sh300.

Nakhumicha spoke on Wednesday during the commissioning of Kemsa Kisumu Regional Distribution Centre.

Health CS Susan Nakhumicha during the launch of the Kemsa Kisumu Regional Distribution Center on March 6, 2024.
Health CS Susan Nakhumicha during the launch of the Kemsa Kisumu Regional Distribution Center on March 6, 2024.
Image: FAITH MATETE

The centre, she said, is a significant milestone in the processing of essential medicines and medical supplies (EMMS) with capacity to dispense orders valued at Sh295.4 million.

The centre will serve over ten counties in the Great Lakes region including Kisumu, Bungoma, Busia, Siaya and Vihiga.

The CS said additional orders valued at Sh.152.8 million for Kericho, Kisii, Nyamira and Migori counties are currently being processed.

The centre, Nakhumicah noted, underscores Kemsa's commitment to bringing healthcare services closer to the communities under its Kemsamashinani Campaign.

Nakhumicha said the launch of the centre marks a great milestone not just for the agency, the region or the healthcare sector, but also for the entire nation by guaranteeing Kenyans enhanced access to quality and timely health products and technologies.

She said this is in line with their commitment and journey towards achieving Universal Health Coverage—a core pillar to government's development agenda.

Nakhumicha added that the establishment of the Kisumu RDC is a clear manifestation of their unwavering commitment to bring 'Dawa Mashinani' initiative to fruition in line with the Kenya Kwanza government's Bottom-Up Economic Transformation Agenda.

"It is a strategic enhancement to our healthcare system set to elevate the standard and reach of medical supplies distribution as evidenced by our impressive network," she said.

"Distributing to over 9,000 health facilities and 5,047 HIV/Aids testing sites is testament to our dedication, outreach and hard work."

Kemsa Board chair Irungu Nyakera emphasised the transformation of the facility into a dynamic hub, now seamlessly connected with the National Supply Chain Centre in Embakasi. 

"The depots which remained moribund for nearly a decade have been linked to the National Supply Chain Centre, Embakasi to mirror functionality and enable seamless operations," Nyakera explained. 

He highlighted Kisumu centre's role in decentralising services to meet the growing demand for accessible healthcare solutions to the Lake Region.

The Kisumu Regional Distribution Center is designed to efficiently manage the receipt, processing and distribution of medical supplies within the Lake Region, significantly reducing the Order Turnaround Time by about 40 per cent. 

"Decentralisation of Kisumu and later Mombasa hubs has been triggered by the growing demand to bring services closer to mwananchi in order to serve and satisfy our customers demands," Nyakera said.

"Previously, Kisumu Regional Distribution Centre was only processing programme orders,” he added.

Kemsa is implementing pivotal measures including leveraging cutting-edge technology and innovation to achieve operational excellence.

Nyakera said the upcoming implementation of a new ERP system is expected to significantly improve the agency's supply chain management and accountability.

Kemsa Kisumu Regional Distribution Center on March 6, 2024.
Kemsa Kisumu Regional Distribution Center on March 6, 2024.
Image: FAITH MATETE
WATCH: The latest videos from the Star