Healthcare is a fundamental right, not a privilege. Recognizing this, Kenya has taken a bold step toward Universal Health Coverage (UHC) through the establishment of the Social Health Authority (SHA). This newly implemented framework replaces the National Health Insurance Fund (NHIF) with a more inclusive and sustainable model focused on ensuring every Kenyan can access affordable, quality healthcare.
What Is the Social Health Authority?
The Social Health Authority (SHA) is a government agency established under the Social Health Insurance Act, 2023, which came into effect as part of Kenya’s broader healthcare reforms. Its primary responsibility is to manage and oversee social health insurance schemes that provide access to healthcare services for all citizens, especially the vulnerable.
The SHA now coordinates three key funds:
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Primary Healthcare Fund – Covers basic health services at community and dispensary levels.
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Social Health Insurance Fund – Replaces NHIF, and caters to general outpatient and inpatient care.
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Emergency, Chronic and Critical Illness Fund – Helps manage cases requiring urgent or prolonged specialized care.
Why the Shift from NHIF to SHA?
While NHIF played a critical role in health financing, it had numerous limitations, such as delayed reimbursements, coverage gaps, and administrative inefficiencies. The SHA addresses these challenges by:
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Creating a centralized system with better accountability.
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Ensuring everyone contributes based on income, including those in the informal sector.
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Improving access and reducing out-of-pocket expenses.
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Digitizing processes to streamline registration, payments, and claims.
SHA Registration and Contributions
All Kenyans—employed or unemployed—are mandated to register with SHA. Employers are now required to deduct contributions from their staff salaries and remit them to the SHA. Self-employed individuals can register and contribute through mobile platforms such as USSD codes or the SHA paybill number.
The monthly contribution is set at 2.75% of gross salary, with the government subsidizing costs for the indigent population. These funds are pooled and redistributed to ensure that no one is left behind, especially in accessing basic healthcare services.
What This Means for Employers and Employees
Employers now have a legal obligation to:
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Register all employees under SHA.
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Deduct and remit contributions monthly.
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Maintain updated employee records.
Employees can now expect:
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Comprehensive healthcare benefits.
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Access to both public and private facilities under SHA-approved providers.
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Reduced medical costs for chronic or emergency conditions.
The Road to Universal Health Coverage (UHC)
SHA is more than just an administrative shift—it’s a step toward achieving Universal Health Coverage by 2030. It aims to ensure that:
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All Kenyans access the healthcare they need.
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Healthcare services are of good quality.
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No one suffers financial hardship due to health costs.
Final Thoughts
The establishment of the Social Health Authority is a transformative milestone for Kenya. It underscores the government’s commitment to making healthcare more equitable and accessible. As implementation continues, awareness and compliance from both the public and employers will be crucial.
For businesses and HR teams, now is the time to align your payroll systems with SHA requirements.
Need help managing employee contributions and SHA compliance?
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