The Ministry of Health has said the 2.75 per cent Social Health Authority contribution is still in effect.
This follows a High Court decision to strike out a petition challenging the rollout of the Social Health Insurance Fund (SHIF).
In a statement, Health CS Aden Duale said they acknowledge the High Court's decision in the petition challenging the SHA rollout.
“This Petition challenged the transition of data from the National Health Insurance Fund (NHIF) to SHA, as well as the statutory 2.75 per cent contribution to SHIF,” he said.
“The Court, recognising that the core issues raised in the petition are already under active consideration by the Court of Appeal, declined to issue any orders and struck out the petition.”
The CS assured Kenyans that the 2.75 per cent contribution remains legally in force and is now recognised as tax-deductible under the Tax Laws (Amendment) Act, 2024.
He said SHA continues to operate within the legal framework provided by the Universal Health Coverage laws, the Social Health Insurance Act, the Digital Health Act and the Primary Health Care Act of which are designed to uphold equity, financial protection, and access to quality health services for all Kenyans.
“We remain committed to a transparent, rights-based, and citizen-centred transition from NHIF to the SHA system. Data protection and continuity of service remain top priorities throughout this process,” Duale added.
He said that SHA acknowledges the important role of the courts in shaping public administration and policy.
“We continue to engage stakeholders across sectors as we implement a more inclusive, accountable, and future-ready national health insurance framework. We invite all Kenyans to walk with us on this journey toward a healthier, more secure future.”
On Monday, June 23, 2025, Justice Chacha Mwita ruled that the petition, filed by four doctors led by Doctor Clarence Eboso Mweresa, could not proceed due to ongoing cases at the Court of Appeal and the High Court that touch on similar issues.
The judge found that the matter was “subjudice”, which means it involved issues already pending before courts of competent jurisdiction.
“The issues raised in this petition are already pending before the Court of Appeal and in Petition E513 of 2024. Proceeding to determine them now would risk conflicting decisions and render this court’s findings academic. For that reason, the petition is struck out,” Justice Mwita ruled.
The petitioners had sought to declare mandatory registration and contribution to the SHIF unconstitutional, arguing that the SHIA violated fundamental rights, including privacy, equality, and protection of private property.
They also raised concerns over a 2.75 per cent deduction on gross income for all Kenyans, employed and unemployed alike, and the automatic transfer of personal data from the defunct NHIF without consent.
