Nakhumicha lauds verdict okaying Social Health Insurance Act

The ruling paves way for replacement of NHIF with Social Health Insurance Fund.

In Summary

• The lifting of the order now gives the green light for the implementation of the Social Health Insurance Fund (SHIF).

• The court also lifted orders restraining the implementation of the Primary Health Care Act, 2023, and the Digital Health Act, 2023.

Health Cabinet Secretary Susan Nakhumicha speaks to a patient at a hospital.
Health Cabinet Secretary Susan Nakhumicha speaks to a patient at a hospital.
Image: MoH

Health Cabinet Secretary Susan Nakhumicha has welcomed the Appellate court's verdict that lifted the stay order on the implementation of the Social Health Insurance Act.

The court also lifted orders restraining the implementation of the Primary Health Care Act, 2023, and the Digital Health Act, 2023 issued by High Court Judge Justice Chacha Mwita on November 27, 2023.

The lifting of the order now gives the green light for the implementation of the Social Health Insurance Fund (SHIF).

"This fund will pave the way for the implementation of Universal Health Coverage - which will make healthcare available and affordable to all Kenyans," CS Nakhumicha said in a statement on Friday. 

"Delivery of affordable healthcare is a cornerstone of the Bottom-Up Economic Transformation Agenda of the Kenya Kwanza Government and I applaud the Court of Appeal for its swift decision."

She said the development now opens the door for a resilient healthcare system in the country that aligns perfectly with UHC strategies.

The Social Health Insurance Act, 2023 among other things provides for the extension of health insurance to all Kenyans based on member contributions, with government-subsidised coverage for the poor.

It also mandates the creation of three funds to cover different types of services: the Primary Healthcare Fund, the Social Health Insurance Fund and the Emergency, Chronic And Critical Illness Fund.

Nakhumicha said the Social Health Insurance Fund will establish a consolidated pool of contributions and provide funds for purchasing healthcare services from accredited health providers and facilities.

She said Kenyans will also be able to access quality healthcare across all tiers of accredited public healthcare facilities from Levels 1-6.

The CS said coverage will be comprehensive, affordable, equitable and non-discriminatory towards Kenyans based on their ailments.

"This patient-based approach aims to address the limitations observed in the National Health Insurance Fund (NHIF) and ensure inclusive coverage for common illnesses, accidents, chronic conditions and critical illnesses," she said.

Implementation of the Social Health Insurance Act will phase out the NHIF and replace it with the Social Health Insurance Fund.

In his petition to challenge the implementation of the Fund, Kenyan Joseph Aura urged that all three Health Acts are unconstitutional on several fronts including that they strip Kenyans of their rights.

He told the court that Section 26(5) of the Social Health Insurance Fund requires a contributor to produce proof of compliance of their monthly remittance to the fund before being treated.

He said this provision would discriminate against Kenyans who are not digitally registered on the social fund and outrightly denied medical care.  

"Even when so registered, where such person(s) remain(s) not up to date in the remittance of such prescribed dues under the said Act, they will nevertheless be automatically barred from accessing any, and any such governmental services, thereby creating a constitutionally-barred class of differentiated and destitute underdogs,"  he said.

But while overturning the stay orders issued by Justice Chacha, Court of Appeal Judges Patrick Kiage, Pauline Nyamweya and Ngenye Macharia said Section 26(5) of the Act that makes that provision remains suspended.

They also said Section 27(4) and Section 47(3) of the Social Insurance Act remains suspended.

Section 27(4) denies members access to medical care if their contributions are not up to date while Section 47(3) obligates every Kenyan to be uniquely identified for purposes of provision of health services.

The Provision is made under the Digital Health Act, 2023, which provides for the establishment of the Digital Health Agency for health data collection purposes.

WATCH: The latest videos from the Star