NAIROBI, Kenya -Lawmakers have expressed grave concerns over the financial viability of the newly established Social Health Insurance Fund (SHIF), warning that the scheme is at risk of collapse unless urgent funding mechanisms are put in place.
Appearing before the National Assembly Health Committee, Medical Services Principal Secretary Harry Kimutai disclosed that only 3.9 million contributors were actively paying into the fund, despite 20.2 million Kenyans being registered as beneficiaries.
The low contribution rate has raised fears among MPs that SHIF is financially unsustainable, prompting calls for urgent reforms to secure the future of the scheme.
Committee Chair Robert Pukose (Tinderet MP) described the situation as a ticking time bomb, arguing that the current contribution levels were insufficient to keep the fund running.
“That’s an insignificant number—it will not sustain this fund. Eventually, this model will collapse. We must establish ways to ensure more Kenyans contribute. This is a crisis in the making. Is this model even viable?” Pukose questioned.
Vice Chair Patrick Munene (Chuka Igambang’ombe MP) raised further concerns, stating that the current system provides little incentive for Kenyans to contribute, as they can still access healthcare services simply by registering.
“If I can get treatment at level 2 and level 3 hospitals just by registering, why should I pay for the premium? Even for the Emergency and Chronic Fund, I only need to pay at the point of treatment. What motivation is there for anyone to contribute regularly?” Munene asked.
He suggested that the government should revisit aspects of the former NHIF system, which had mandatory contributions to ensure the fund remained financially sound.
“We must rethink this model and perhaps integrate some features from NHIF. Otherwise, we are running an insurance scheme that cannot sustain itself,” he warned.
Seme MP James Nyikal echoed similar sentiments, stating that SHIF’s structure was already on the verge of collapse due to its low contributor base.
“The fact that only 3.9 million Kenyans out of 20.2 million registered are contributing is a serious threat to the fund’s survival,” Nyikal emphasized.
