KMPDU Condemns Rollout of Social Health Insurance Fund (SHIF), Citing Major Concerns
The Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU) has strongly criticized the government’s rollout of the Social Health Insurance Fund (SHIF), calling it a “sinking ship” that will deny Kenyans access to vital healthcare services.
In a statement issued to newsrooms, KMPDU Secretary General Dr. Davji Atellah condemned the new national medical insurance scheme, warning that it would do more harm than good.
“SHIF is a capsizing ship! There is too much bilge water for it to sail. We have repudiated the Act from November 2023, with one message: it will deny Kenyans access to healthcare,” Dr. Atellah said.
He raised concerns about the government’s decision to transition from the National Health Insurance Fund (NHIF) to SHIF, arguing that NHIF provided superior benefits compared to other private insurance plans. “A social insurance law with a co-payment component is a fraud. The comprehensive medical package provided by NHIF was superior to all other private sector insurance plans,” he emphasized.
Atellah accused the government of favoring private insurers with this shift, calling it a “double robbery” for civil servants who, according to him, would lose out on adequate coverage. He further condemned SHIF’s increased deductions, which he said would significantly burden taxpayers.
Under SHIF, employed individuals will pay 2.75% of their income monthly, while informal sector workers will make an annual payment. For instance, someone earning Ksh.20,000 per month will now pay Ksh.6,600 annually, while higher earners, such as those making Ksh.500,000 monthly, will pay Ksh.165,000 per year.
Corporate executives earning up to Ksh.10 million monthly will face deductions of Ksh.275,000 per month, or Ksh.3.3 million annually.
Dr. Atellah also criticized the inadequacy of the SHIF services, stating that members, regardless of their contributions, will only be entitled to a primary healthcare package worth Ksh.900 per year, covering basic consultations, tests, and prescriptions. Optical and dental coverage will be capped at Ksh.1,000 and Ksh.2,000 respectively, and cancer-specific screenings will not be immediately available.
“We relinquished our medical allowance for comprehensive medical cover, which has now been removed, and yet we are expected to pay five times more – this is insane,” Dr. Atellah said.
KMPDU has already taken legal action against SHIF, including taking the case to the Court of Appeal. Dr. Atellah expressed frustration that MPs who passed the Act seemed unaware of its consequences. He concluded by asserting that public healthcare is being intentionally defunded and made dysfunctional.
