Japhet Ruto, a journalist at TUKO.co.ke, possesses over eight years of experience in reporting on finance, business, and technology, providing deep and insightful analysis of economic trends in Kenya and across the globe.

Kenyan Members of Parliament (MPs) have warned that the recently established Social Health Authority (SHA) could collapse over unsustainable Social Health Insurance Fund (SHIF) contributions.

The lawmakers asked the government to implement immediate changes to ensure the national health insurance programme's survival.

Despite having 20.2 million registered beneficiaries, Medical Services Principal Secretary (PS) Harry Kimtai told the National Assembly Health Committee that only 3.9 million people are actively contributing to SHIF.

The National Assembly's Departmental Committee on Health, chaired by Endebess MP Robert Pukose, was concerned about the low contribution rate despite the country's high population, noting that the fund cannot survive without the necessary action to increase the number of contributors.

This emerged on Thursday, March 6, when PS Kimtai presented a report on the implementation status of the State Department for Medical Services for the first half of the 2024/25 financial year.

In his critique of the current finance model, Pukose warned that the scheme is doomed to collapse if mandated contributions are not increased to accommodate more Kenyans.

"This fund won't become viable as the contributions are like a drop in the ocean. In the end, it will kill this fund. We need to look for ways to ensure that Kenyans make contributions to the fund. Is that sustainable? It's a disaster waiting to happen," Pukose of the ruling UDA Party lamented, as reported by Capital FM.

The committee's vice chair, Patrick Munene (Chuka Igambang'ombe of UDA), questioned the contribution model.

He argued that many Kenyans could choose not to pay premiums because they might still receive free medical services after registration as beneficiaries.

"Why should I pay the premiums if I can get level two and level three treatment for free just by registering? That's all I have to do: register. Even for Emergency and Chronic Fund care, I have to pay right away to get treatment. Why should I pay?" he posed.

On Tuesday, October 1, 2024, the government launched SHA to replace the National Hospital Insurance Fund (NHIF).

More than 7,000 healthcare providers have already been contracted to provide services, according to PS Kimtai.

He cautioned hospitals demanding cash payments from patients that they could be blacklisted.

Source: TUKO.co.ke