Govt Changes Tune, New Mandatory Salary Deductions to Start This Month.
Govt Changes Tune, New Mandatory Salary Deductions to Start This Month: The Ministry of Health on Wednesday, March 6, wiped out an earlier promise to start effecting Social Health Insurance Fund (SHIF) deductions in July 2024.
Speaking during an interview with Citizen TV, Health Cabinet Secretary Susan Nakhumicha explained that deductions will start this month( March)
CS Nakhumicha revealed that the Ministry would gazette the SHIF regulations on Friday, March 8, to pave the way for employers to factor this in the March payroll
She remarked,”Once the regulations are gazetted, they come into effect so that means deductions begin end of March, 2.75 per cent of income.”
However, The CS Nakhumicha outlined that from March, the government will need 90 days to prepare for the nationwide rollout of the universal health plan.
This means, while deductions will start in March, Kenyans will not be able to access the benefits of the insurance scheme until July 2024
“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,” she explained the delayed access of benefits.
“Effective the new financial year which is July, now Kenyans can begin to access services under the Social Health Authority,” she added.
While salaried Kenyans will have their deductions automatically deducted, unemployed Kenyans will be required to make a Ksh300 monthly contribution.
Should the government ascertain you cannot afford the Ksh300, the amount will be advanced in the form of a loan.
She stated,”We have put in a mechanism that at the point you interact with a government service, then you are required to pay for your SHIF.”
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