Court Greenlights Social Health Authority Rollout as Planned on October 1

NAIROBI, Kenya – The Social Health Authority (SHA) rollout is set to proceed as scheduled on October 1, following a key ruling by the Court of Appeal.

The court sided with the Ministry of Health, affirming the validity of the appeal and granting a stay on an earlier High Court decision that had declared portions of the Social Health Insurance Act (SHIA) unconstitutional.

“In these complex circumstances, we are inclined to grant a stay as the High Court decision is reviewed by this Court, pending an authoritative ruling on the validity of the three statutes,” the appellate judges stated.

The SHA, designed to replace the 58-year-old National Health Insurance Fund (NHIF), will manage the Primary Healthcare Fund, the Social Health Insurance Fund (SHIF), and the Emergency, Chronic, and Critical Illness Fund.

This transition marks a significant step in the government’s ambitious agenda to implement universal health coverage (UHC) for all Kenyans.

The appeal followed a July 12 ruling by a three-judge High Court bench, which had found sections of the SHIA unconstitutional due to inadequate public participation and provisions that limited access to healthcare based on an individual’s contribution status.

The judges had given the government 120 days to rectify the law, warning that failure to do so would result in the Act’s suspension.

In staying the earlier ruling, the Appellate Court noted that suspending the SHA rollout would cause unnecessary uncertainty, stating, “Reverting to the old framework, only to potentially return to the current one if the appeal succeeds, would place this critical sector in a state of instability.”

Under the new SHA framework, all Kenyan citizens, along with their dependents, are required by law to register for membership.

Contributions will amount to 2.75% of each individual’s income, with the government covering the cost for those unable to afford the premium.

Payments made to the NHIF by October 9, 2024, will be transferred to SHA accounts, while all contributions from November 9, 2024, will be directly credited to the new authority, according to a public notice issued by acting SHA CEO Elijah Wachira.