A court case contesting the recently passed Social Health Insurance Act has been filed.
Dominic Oreo, the petitioner, claims that the 2.75 percent required of employees is too much for Kenyans, who already have to deal with many taxes and deductions.
Mr. Oreo contends that the new Act needs more clarity and offers a framework or trustworthy means of member identification.
"This means that testing is error-prone, with some undeserving individuals being classified as poor, while some deserving poor are excluded," reads court papers.
He says that premium contributions, unreliable for mobilizing healthcare resources in a nation with extreme poverty, are more complex ways to fund the health program.
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He claims the law needs to specify workable methods for obtaining money from the unorganized sector.
The Primary Health Care Act, 2023, the Digital Health Act, 2023, the Facility Improvement Financing Act, 2023 and the Social Health Insurance Act, 2023 lay the foundation for the biggest revolution in Kenya’s healthcare system since independence. pic.twitter.com/lxHAkBw7fP
— William Samoei Ruto, PhD (@WilliamsRuto) October 19, 2023
The petitioner claims it would be discriminatory and may result in job losses if NHIF employees are not transferred to the newly created fund.
"The Act does not outline the role of county governments and the potential impact of the Act on counties," he argues, urging the court to quash the Act.
The petition was launched following the signing of four Universal Health Coverage (UHC) legislation into law by President William Ruto on Thursday.
The Primary Health Care Bill, the Facility Improvement Financing Bill, the Digital Health Bill, and the Social Health Insurance Bill are among the four bills.
Accordingly, Kenyans working in the official sector must now contribute 2.75 percent of their monthly wage, with a minimum of Ksh. 300 and a maximum of Ksh. 5,000.
President Ruto justified the decision, saying that each Kenyan will pay according to their income, during remarks at the 60th Mashujaa Day celebrations held in Kericho County on Friday.
Present were First Lady @MamaRachelRuto, Deputy President @rigathi, his spouse @Pastor_Dorcas and Prime Cabinet Secretary @MusaliaMudavadi. pic.twitter.com/3AdORQRoQV
— William Samoei Ruto, PhD (@WilliamsRuto) October 20, 2023
Ruto stated that after the four measures are signed into law, each Kenyan's healthcare needs will be considered instead of their financial situation when determining their access to healthcare.
"Previously, an individual earning Ksh.10,000 had to part with Ksh.500 to NHIF, a hefty 5% of their earnings. On the other hand, those with salaries of Ksh.100,000 or more contributed Ksh.1,700, a mere 1.7% of their income. Astonishingly, even someone with a monthly income of Ksh.1 million, paid the same amount," said President Ruto.
"This bizarre setup meant that low-income earners were effectively subsidizing high-income earners. The Social Health Insurance Fund also signifies a shift to increased use of domestic resources for health financing and a sustainable approach, especially at a time when resources from donors and development partners are dwindling."
