The government has maintained that the 2.75% statutory contribution to the Social Health Insurance Fund (SHIF) remains legally in force, following a recent High Court decision dismissing a petition that sought to challenge ongoing health sector reforms.

In a statement issued on Monday, the Ministry of Health stated that it acknowledges Justice Mwita's decision in Petition E524 of 2024 — Clarence Eboso vs Ministry of Health & Social Health Authority (SHA) — delivered on June 13, 2025.

The petition questioned both the transfer of data from the National Health Insurance Fund (NHIF) to SHA and the legality of the 2.75% mandatory contribution under the Social Health Insurance Act.

However, the court declined to issue any orders, citing that the core issues raised are already being reviewed by the Court of Appeal.

As a result, the petition was dismissed, allowing the transition process and contributions to proceed within the existing legal framework.

The Ministry has assured Kenyans that the contribution is not only legal, but also tax deductible under the Tax Laws (Amendment) Act of 2024.

“The 2.75% contribution remains legally in force. SHA continues to operate within the Universal Health Coverage laws, including the Social Health Insurance Act, the Digital Health Act, and the Primary Health Care Act,” the statement read in part.

The Ministry emphasized that the new system is intended to promote equity, financial security, and access to high-quality health care for all Kenyans.

Health Cabinet Secretary Aden Duale, added that the government is committed to a smooth and transparent transition from NHIF to SHA, with a strong emphasis on data protection and ensuring that service delivery is not disrupted.

“We remain committed to a transparent, rights-based, and citizen-centered transition,” said CS Duale. “We invite all Kenyans to walk with us on this journey toward a healthier, more secure future.”