The Appellate Court has approved the rollout of the Social Health Authority (SHA) to proceed as scheduled on October 1.
The Court of Appeal ruled in favor of the Ministry of Health, confirming that its appeal is valid.
“In these complex circumstances, we are inclined to grant a stay as the High Court decision is reviewed by this Court, pending a definitive ruling on the validity of the three statutes,” the court stated.
The SHA will replace the National Health Insurance Fund (NHIF), which has been in place for 58 years, starting October 1, 2024.
However, a three-judge panel found on July 12 that two sections of the Social Health Insurance Act (SHIA), which established the SHA, were unconstitutional. Justices Alfred Mabeya, Robert Limo, and Friday Mugambi declared Sections 26(5) and 27(4) of the Act null and void, as they stipulated that access to health services required up-to-date contributions and proof of registration compliance.
The judges criticized the legislation for its lack of public participation and granted the government 120 days from the judgment date to rectify these legal breaches. They warned that failure to do so would result in the Act remaining suspended.
In staying the previous judgment, the Appellate Court noted: “We base this decision on the fact that these statutes have been in effect for nine months. Returning to the old framework, only to possibly revert back to the current one if the appeal succeeds, would create uncertainty in this critical sector.”
The transition from NHIF to SHA is part of the government’s initiative to implement universal health coverage (UHC).
The SHA will manage three funds that will replace the NHIF: the Primary Healthcare Fund, the Social Health Insurance Fund (SHIF), and the Emergency, Chronic, and Critical Illness Fund.
Acting SHA CEO Elijah Wachira announced on September 18 that every Kenyan citizen, including dependents, is legally required to register as a member of the SHA. Members will contribute 2.75 percent of their income to the SHIF, while the government will cover premiums for those unable to pay.
“Payments made on or before October 9, 2024, will be credited to the NHIF. Payments made from November 9, 2024, onward will be credited to the SHA,” Wachira added.
