There is immense controversy surrounding the launch of the Social Health Insurance Fund (SHIF). Issues such as low registration rates among Kenyans, a budgetary allocation of less than 5 percent by the government, and concerns about transparency in the tender process for the crucial technological system have raised serious concerns about this vital program.
Telecommunications giant Safaricom Limited is leading a three-member consortium in a project that was awarded through direct procurement. The Social Health Authority (SHA) has been structured to manage three funds:
1. The Primary Healthcare Fund, which will receive Ksh. 50 billion from the government.
2. The Social Health Insurance Fund, which aims to raise at least Ksh. 148 billion annually through member contributions.
3. The Emergency, Chronic, and Critical Illnesses Fund, which requires at least Ksh. 75 billion each year.
However, this year’s budget allocates only Ksh. 6.1 billion for the government-funded funds: Ksh. 4.1 billion for the Primary Healthcare Fund and Ksh. 2 billion for the Emergency, Chronic, and Critical Care Fund. As the government rolls out the fund next week, SHA is starting off with a budget deficit of Ksh. 119 billion, and there are no details on how much the fund will raise, given the low registration uptake.
The means-testing instrument intended to determine how much households without formal employment will contribute is not ready, reportedly containing serious errors that overstate the amounts families should pay. Additionally, the desired integrated healthcare information technology system is also not ready.
Currently, SHA has no employees, as the law specifies that NHIF staff can only be enlisted through a competitive recruitment process.
Just last week, President William Ruto made changes to SHA, dropping Dr. Timothy Olweny, who had been leading the preparatory phase since November 2023. In his place, Dr. Abdi Mohamed, a former board member, was appointed Chairman. Dr. Olweny is now the board chair at the National Cancer Institute.
The Ministry of Health reports that nearly 2 million Kenyans have registered or applied for registration, with a target of reaching 50 million Kenyans or 12 million households. Additionally, details have emerged about a plan to develop a new healthcare information management system under a consortium that will cost Ksh. 104 billion. This consortium comprises Safaricom Limited, Apeiro Limited, and Konvergenz Network Solutions Limited. Notably, Apeiro Limited was registered on July 5, several months after the search for a system began.
“Apeiro is registered in Dubai. If it wants to do business in Kenya, it has to be registered locally,” Medical Services PS Harry Kimtai stated.
However, this year’s budget allocates only Ksh. 6.1 billion for the government-funded funds: Ksh. 4.1 billion for the Primary Healthcare Fund and Ksh. 2 billion for the Emergency, Chronic, and Critical Care Fund. As the government prepares to roll out the fund on Tuesday next week, the Social Health Authority (SHA) is starting off with a budget deficit of Ksh. 119 billion, and there are no details on how much the fund will raise, given the low registration uptake.
The means-testing instrument, intended to determine how much households without formal employment will contribute, is not ready, reportedly containing serious errors that overstate the amounts families should pay. Additionally, the desired integrated healthcare information technology system is also not ready. SHA currently has no employees, as the law specifies that NHIF staff can only be enlisted through a competitive recruitment process.
Just last week, President William Ruto made changes to SHA, dropping Dr. Timothy Olweny, who had been leading the preparatory phase since November 2023. In his place, Dr. Abdi Mohamed, a former board member, was appointed Chairman. Dr. Olweny is now the board chair at the National Cancer Institute.
The Ministry of Health reports that nearly 2 million Kenyans have registered or applied for registration, with a target of reaching 50 million Kenyans or 12 million households. Additionally, details have emerged about a plan to develop a new healthcare information management system under a consortium that will cost Ksh. 104 billion.
This consortium comprises Safaricom Limited, Apeiro Limited, and Konvergenz Network Solutions Limited. Notably, details from the Registrar of Companies indicate that Apeiro Limited was registered on July 5, several months after the search for a system began.
