The Social Health Insurance Fund (SHIF) is already facing financial struggles just five months after its introduction. The Ministry of Health has now admitted that the new scheme, which replaced the National Health Insurance Fund (NHIF) in October last year, is struggling to process payments due to a funding crisis.
This marks the first time the government has openly acknowledged the difficulties surrounding SHIF, despite public complaints about delays and inefficiencies.
Health Cabinet Secretary Deborah Barasa and Director General of Health Dr. Patrick Amoth have revealed that out of the 19 million Kenyans registered under the scheme, only 3.3 million are actually contributing.
This massive gap between registered members and active contributors has raised concerns about the sustainability of the program. With such low contributions, it remains unclear how SHIF intends to provide healthcare services to millions of Kenyans who depend on it.
The Social Health Authority (SHA), which is responsible for managing SHIF, has faced strong criticism from Kenyans and Members of Parliament. Many have questioned the rush to implement the program without a clear financial plan.
Some MPs have called for a complete overhaul of the scheme to address its challenges before it collapses entirely. The program was meant to offer universal healthcare, but these early struggles suggest that the government may have overestimated its ability to run the scheme efficiently.
The former deputy president Rigathi Gachagua has also criticized President Ruto’s administration for how it has handled SHIF. He accused the government of coercing and blackmailing Kenyans into registering for a scheme that many had already expressed concerns about.
He described the entire process as a fraud, calling it “pure theft of public funds.” He further claimed that the real reason behind the push for SHIF was not healthcare but the Ksh.104 billion involved.
His remarks have added to the growing political pressure on the government to explain the real financial status of SHIF.
Despite the criticism, Health CS Deborah Barasa has remained optimistic about the program. She recently assured Kenyans that the technical issues affecting SHA will be resolved soon. She also emphasized that Taifa Care, which is part of the SHIF program, will be implemented across the country and that Kenyans will start enjoying its benefits soon.
She acknowledged that there have been challenges, including system failures, but insisted that these issues are not unique to Kenya. According to her, many other countries have faced similar struggles when implementing new healthcare programs.
Barasa defended SHIF by arguing that the number of registered members is a sign of progress. She pointed out that NHIF had far fewer members compared to SHIF, which now has over 18 million registered Kenyans. However, critics argue that having millions of registered members does not mean much if only a small fraction is contributing.
Without enough funds, hospitals may continue to experience delays in receiving payments, and patients could suffer due to lack of medical services.
As things stand, SHIF appears to be in trouble. If the government fails to address the funding crisis, the program could become another failed project, leaving millions of Kenyans without proper healthcare. The Ministry of Health will have to act fast to restore public confidence and ensure that SHIF does not collapse before it even fully takes off.
