Salasya proposes KSh500 monthly SHA contribution for all Kenyans

Mumias East MP Peter Salasya has proposed amendments to restructure the Social Health Authority (SHA), including a flat KSh500 monthly contribution for every Kenyan. The bill targets operational and financial failures in SHA, aiming to make it self-sustaining.

Mumias East MP Peter Salasya addressed a letter to National Assembly Speaker Moses Wetang'ula on April 11, proposing amendments to the Social Health Insurance Act, 2023.
The core change shifts from income-based annual contributions to a uniform KSh500 monthly fee for all registered members, similar to the former NHIF system.
"SHA needs to be self-sustainable and not depend on exchequer funding by having a lot of money to support many Kenyans," Salasya wrote.

Salasya highlighted low compliance in the current setup, where only about 5 million of 29 million registered members actively contribute.
He seeks to reinstate the Linda Mama programme, introduce voluntary contributions for others or a national solidarity pool for the vulnerable, and merge SHA's three funds—the Primary Healthcare Fund, Social Health Insurance Fund (SHIF), and Emergency, Chronic, and Critical Illness Fund—into one for efficiency.

The bill also proposes a new section requiring SHA to settle verified hospital claims within 60 days.
Ministry of Health records show over 30 million registered since 2024, with salaried members contributing 2.75% of gross pay and informal sector at least KSh300.
The proposal arises amid claims of irregularities in SHA, which the Health Ministry has dismissed.

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Press conference photo of health insurance chief Andreas Gassen calling for abolition of voluntary services to save 1 billion euros amid 12 billion euro gap.
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Health insurers' chief demands abolition of voluntary services

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Andreas Gassen, chairman of the Kassenärztliche Bundesvereinigung, calls for the complete elimination of voluntary additional services provided by statutory health insurance funds to achieve savings. He estimates the potential savings at nearly one billion euros per year. This comes amid a looming financing gap of twelve billion euros in the statutory health insurance system.

Kenya's Social Health Authority (SHA) risks collapse as monthly revenues barely cover expenses, MPs have warned. Dr James Nyikal, chair of the National Assembly's health committee, raised the concerns after an investigative visit to Mombasa.

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Former Deputy President Rigathi Gachagua has warned that the Social Health Authority (SHA) is on the brink of collapse within six months without urgent action. He cited government debts to hospitals exceeding Ksh90 billion, risking a nationwide health crisis. The government recently disbursed Ksh15.4 billion, but claims persist.

Nyaribari Chache MP Zaheer Jhanda has defended raising cash handouts to constituents from KSh500 to KSh1,000, saying the money comes from his salary. Videos of the distributions have gone viral online, prompting mixed reactions. Jhanda noted he began giving KSh500 per person in 2022.

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The Public Accounts Committee (PAC) of the National Assembly has urged the Public Service Commission (PSC) to create regulations preventing public servants from receiving net pay below the legal minimum. This came during a meeting with State House Comptroller Katoo Ole Metito while reviewing Auditor-General reports. The 2023/2024 audit revealed 78 State House staff earning below the one-third threshold due to excessive deductions.

Kenya's State House budget for the 2025/26 fiscal year has doubled to Sh16.998 billion following mid-year supplementary allocations initially without parliamentary approval. This increase shows spending exceeding budgets of other nations' presidencies, such as the US and Germany. Experts warn of risks in exhausting the budget early and constitutional violations.

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The CSU has sharply criticized Federal Health Minister Nina Warken's (CDU) plans to stabilize statutory health insurance. Bavarian CSU parliamentary leader Klaus Holetschek called for stronger federal budget financing of contributions for Bürgergeld recipients. Finance Minister Lars Klingbeil (SPD) rejects this.

 

 

 

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