Kenya’s Court of Appeal has greenlit a contentious healthcare insurance levy, reversing a prior prohibition.
President William Ruto’s Social Health Insurance Fund (SHIF), aimed at offering affordable healthcare, faces opposition as many perceive it as a new tax, exacerbating the cost-of-living crisis that fueled protests last year.
The High Court had halted SHIF’s rollout in November, prompted by businessman Joseph Enock Aura’s petition challenging aspects of the scheme.
This setback, coupled with the suspension of a housing levy, irked President Ruto, leading to accusations of corruption against unnamed judges and claims that the judiciary colluded with the opposition.
Replacing the corrupt-ridden National Health Insurance Fund (NHIF), SHIF’s ban was lifted by a three-judge bench, citing a threat to the health rights of citizens not involved in the litigation. However, mandatory registration sections were suspended.
Workers are now required to contribute 2.75% of their salaries to the new health fund, though the law doesn’t address affordability concerns. President Ruto pledged government support for those unable to pay.
Critics argue that the 2.75% deduction, combined with recent fuel price hikes, exacerbates the burden, and there are concerns that administrative expenses might overshadow direct healthcare costs.
President Ruto previously signed the Finance Act in June, introducing a 1.5% housing levy for affordable housing, facing its own legal challenges.
