Kenya to launch Social Health Authority in October 2024

KENYA—The Ministry of Health has announced that the Social Health Authority (SHA) will officially be launched on October 1, 2024, in a major move towards achieving Universal Health Coverage (UHC).

The announcement was made by Health Cabinet Secretary Dr. Deborah M. Barasa during a media breakfast meeting held at the Sarova Panafric Hotel in Nairobi on September 18, 2024.

During her speech, Dr. Barasa emphasized the significance of the SHA rollout, noting that it would be implemented through a step-by-step approach.

“We are launching the SHA on October 1st, and while the benefit package will initially be based on the available resources, this is a significant step towards realizing UHC,” she explained.

The SHA is set to replace the National Hospital Insurance Fund (NHIF) and aims to deliver affordable, accessible, and high-quality healthcare services to all Kenyans.

This transformation is backed by a set of new legislative frameworks, including the Social Health Insurance Act, which mandates mandatory enrolment into the program and expands the benefits for all.

 Additionally, the Digital Health Act will establish a Digital Health Agency to improve efficiency through digitalized healthcare services, while the Primary Health Act guarantees accessible and effective care at the community level.

While the SHA’s comprehensive benefits package has already been finalized, Dr. Barasa acknowledged that funding remains a key challenge.

Current government funding amounts to Ksh.6.1 billion (US$47.08 million), covering only 4% of the total estimated cost of Ksh.168 billion (US$1.29 billion) needed to implement the SHA fully.

Despite these financial constraints, she assured the public that the system would continue to evolve and improve as additional resources are secured over time.

To modernize healthcare, the Ministry of Health has partnered with Safaricom to digitalize health services, enhancing efficiency and data management across healthcare facilities.

Dr. Barasa recognized the current funding gap but reaffirmed the government’s commitment to lowering citizens’ out-of-pocket healthcare expenses while improving service quality.

Key health sector leaders attended the meeting, including Governor Muthomi Njuki, Chair of the Council of Governors’ Health Committee, and Principal Secretaries Mr. Harry Kimtai (Medical Services) and Ms. Mary Muthoni (Public Health and Professional Standards).

The Director General of Health, Dr. Patrick Amoth, the SHA Chairperson, Mr. Abdi Mohammed, and the SHA CEO, Mr. Elijah Wachira, were also present.

 In his remarks, Dr. Amoth highlighted that the SHA benefits package would be uniform for all Kenyans. Employees in the formal sector will contribute 2.75% of their monthly salaries, while informal sector workers will pay a fixed monthly contribution of Ksh.500 (US$3.88).

This marks a shift from the previous NHIF contribution system, where formal sector employees contributed between Ksh.1,400 (US$10.85) and Ksh.1,700 (US$13.18), with employers matching these contributions.

Self-employed individuals were also required to contribute Ksh.500(US$3.88) voluntarily.

Dr. Amoth further added that the reimbursement rate across hospitals has been standardized under the new system, ensuring fairness in service provision.

Mr Kimtai also noted that starting October 1st, healthcare facilities nationwide will begin offering services under the SHA benefit package, completing the transition from NHIF to SHA.