- President Ruto greenlights 2.75% income contribution for universal healthcare.
- Controversy surrounds the move, seen as an added tax burden.
- Earlier 1.5% housing levy led to protests.
Kenya’s President William Ruto has greenlit a contentious overhaul of the healthcare system, centered on universal healthcare and a 2.75% income contribution.
While the government claims it will enhance healthcare accessibility, many Kenyans oppose it as an additional tax, further straining living expenses.
The move follows Ruto’s earlier introduction of the 1.5% housing levy, triggering nationwide protests. Concerns also arise about potential corruption in the new health fund.
Despite the controversy, Parliament has approved the Social Health Insurance Bill and three related health bills, moving forward with the healthcare transformation.
“This rate takes a lot more from distressed salaried citizens, whose incomes support large households of family and services,” the Kenya Faith Based Health Services Consortium said in September.
Kenyans will need to register with the proposed National Social Health Insurance Fund to access public healthcare services, with those who don’t enroll facing service denial.
The government has allocated 26 billion shillings to assist individuals unable to contribute to the fund.
This new fund is set to replace the current NHIF, which has suffered significant financial losses due to corruption, preventing many contributing Kenyans from accessing healthcare.
Some Kenyans are concerned that the increased funding in the new system might exacerbate corruption while still denying them healthcare.
Critics also worry that the new social healthcare organization may allocate a significant portion of collected funds to administrative expenses, mirroring the current NHIF, leaving limited resources for direct healthcare expenses.
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