The Ministry of Health has reaffirmed that the 2.75 per cent contribution to the Social Health Authority (SHA) remains legally binding, following a High Court decision to strike out a petition challenging the implementation of the Social Health Insurance Fund (SHIF).
In a statement released on Tuesday, Health Cabinet Secretary Aden Duale confirmed the court’s ruling, which upheld the ongoing rollout of SHA and its associated deductions. “The petition challenged the transition of data from the National Health Insurance Fund (NHIF) to SHA, as well as the statutory 2.75 per cent contribution to SHIF,” Duale said.
Justice Chacha Mwita, presiding over the matter, dismissed the petition on grounds that the core issues were already pending before the Court of Appeal and in another High Court case, Petition E513 of 2024. “Proceeding to determine them now would risk conflicting decisions and render this court’s findings academic,” Mwita ruled, citing the principle of sub judice.
The petition, filed by four doctors led by Dr. Clarence Eboso Mweresa, argued that mandatory registration and contributions to SHIF were unconstitutional, raising concerns about violations of privacy, equality, and property rights. The petitioners also opposed the automatic transfer of personal data from NHIF to SHA without prior consent.
Despite the legal challenge, Duale emphasized that the 2.75 per cent contribution is now recognized as a tax-deductible expense under the Tax Laws (Amendment) Act, 2024. He assured Kenyans of the Ministry’s commitment to a transparent and rights-based transition from NHIF to SHA.
“The SHA continues to operate within the framework of the Universal Health Coverage laws, designed to ensure equity, financial protection, and access to quality healthcare for all,” the CS added.
Duale also acknowledged the judiciary’s vital role in shaping public administration and policy, adding that stakeholder engagement will continue as the government builds a more inclusive and accountable national health insurance system.
The court’s decision clears a key legal hurdle in the government’s efforts to fully implement SHA as part of its broader universal health coverage agenda.
