Health Cabinet Secretary Aden Duale(second right) addressing the press outside MOH headquarters in Nairobi on April 1, 2025, as outgoing CS Deborah Barasa(in red) and other officials watch on. /ADEN DUALE
Health Cabinet Secretary Aden Duale has reaffirmed that the mandatory 2.75 percent contribution to the Social Health Insurance Fund (SHIF) remains legally in effect following a High Court ruling that upheld the government’s new health financing framework.
In a statement issued on Monday, June 23, Duale welcomed the ruling by Justice Chacha Mwita, who dismissed a petition challenging the legality of the SHIF deduction and the transition of health data from the National Health Insurance Fund (NHIF) to the Social Health Authority (SHA).
“The Ministry of Health acknowledges the High Court’s decision in Petition E524 of 2024 – Clarence Eboso v. Ministry of Health & Social Health Authority (SHA) – delivered on June 13, 2025,” Duale stated.
The petition had raised objections about the legality of the 2.75 percent statutory deduction and concerns over data migration from NHIF to SHA. However, the court ruled that the main issues were already under active consideration by the Court of Appeal and, therefore, struck out the petition without issuing any orders.
“The Court, recognizing that the core issues were already before the Court of Appeal, declined to interfere and struck out the petition,” the CS explained.
SHA System Implementation Uninterrupted
CS Duale reassured Kenyans that the implementation of the SHA system would continue uninterrupted and in accordance with the law, adding that the scheme forms part of the government’s Universal Health Coverage (UHC) agenda.
“The 2.75 percent contribution remains legally in force and is now recognized as tax-deductible under the Tax Laws (Amendment) Act, 2024,” he said.
He further clarified that SHA operates under a solid legal foundation built by three key laws—the Social Health Insurance Act, the Digital Health Act, and the Primary Health Care Act—all aimed at promoting equity, financial protection, and access to quality healthcare.
Smooth Transition from NHIF to SHA
Addressing concerns about the transition from NHIF to SHA, Duale emphasized that the government remains committed to a process that respects citizens’ rights and guarantees data protection and service continuity.
“We are committed to a transparent, rights-based, and citizen-centered transition. Data protection and uninterrupted access to services are top priorities,” he said.
The Ministry also reassured institutional partners and the public that SHA is well-positioned to deliver on its mandate of strengthening healthcare delivery in line with Kenya’s long-term UHC goals.
President William Ruto says the government is rolling out a campaign to register every Kenyan and their dependents in Social Health Authority to enhance health planning.
Speaking during the Third National Executive Retreat, Ruto announced that the exercise will give the national and devolved governments the ability to plan for health adequately by providing the right number of staff, equipment, and medical supplies.
He said on average, 50,000 Kenyans register on the Social Health Authority healthcare system every day.
The President attributed the increase in registration to the need for Kenyans to access health facilities at all levels for free once they make payments.
