The World Bank has called on the Kenyan government to exempt low-wage and informal sector workers from contributing to the Social Health Insurance Fund (SHIF), citing concerns over financial strain on vulnerable groups.
In a recent report, the Bank recommended waiving the mandatory 2.75% salary deduction for workers earning below Ksh 32,333 monthly to increase disposable income and promote formal employment.
The World Bank warned that SHIF’s current structure could fail to meet its Ksh 157 billion annual revenue target, with only 3.9 million contributors against 20.2 million registered beneficiaries as of February 2025.
Kenya’s informal sector, which comprises 70-80% of the workforce, has shown low enrollment due to high contribution rates, risking a funding shortfall for the health sector.
The Bank also advised prioritizing full funding for the Primary Health Care fund and critical services to ensure SHIF’s sustainability, cautioning that the scheme’s deficits could exacerbate Kenya’s debt distress. Public reactions on X reflect mixed sentiments, with some supporting exemptions for low-income earners, while others question SHIF’s viability amid existing health sector challenges
The Kenyan government has yet to respond to the recommendations, as debates continue over SHIF’s troubled rollout and its impact on universal healthcare goals.
