Final Regulations Show SHIF Deductions Will Start in July 2024

Salaried Kenyans can now sigh relief after a new directive postponed Social Health Insurance Fund (SHIF) deductions from March 2024 to July 1, 2024. 

The directive was formally announced through the final Social Health Insurance (General) Regulations, 2024 - putting an end to uncertainty on the deductions and the associated service rollout. 

“Payment of contributions and access to health services under the Act and these regulations will commence on July 1, 2024.

Upon the coming into force of these regulations, every person resident in Kenya shall apply to the Authority for registration as a member of the Social Health Insurance Fund in terms of Section 26(1) of the Act not later than 30 June 2024," the regulations read in part. 

The Ministry of Health had earlier in March announced that the deductions would take effect from March - while the registration would end on June 30th. 

The directive announced by Health CS Susan Nakhumincha drew uproar as it effectively meant Kenyans would receive deductions for four months and only get to enjoy the SHIF service in July. 

“We gazette hopefully on Friday, the regulations (SHIF). Once they are gazetted, they come into effect so that means deductions begin end of March, 2.75% of income. In terms of access to services, our projection is that from March, we need about 3 months to prepare ourselves because we need a digital system to do registration, we need to test it and collect resources. Effective the new financial year which is July, now Kenyans can begin to access services under the Social Health Authority,” Nakhumicha told the country on March 6. 

The CS’s directive had come a few weeks after another statement in late February stating that the new deductions, pegged at 2.75% of the gross salary, would start in July. 

However, it remains unclear whether NHIF will continue to operate after July 1, as Parliament has indicated that its understanding is that NHIF will continue to offer services until December 2024 after which the Social Health Authority (SHA) will take over.