New Health Insurance Model Introduced Nationwide

The Kenyan government has officially launched a new Social Health Insurance Fund (SHIF) under the Social Health Authority (SHA), replacing the old National Hospital Insurance Fund (NHIF). Under this new model, there are three distinct funds: the Primary Healthcare Fund, SHIF itself, and an Emergency, Chronic & Critical Illness Fund, each tailored to cover different levels of care.
Contributions under SHIF are now income‑based, with formal sector employees deducting 2.75% of their salaries, while informal-sector contributions are determined via a means test. Vulnerable households pay as little as KSh 300 per month, a move designed to make the scheme more inclusive and equitable.
The government says SHIF is already having an impact: as of August 2025, hospitals had submitted over KSh 82.7 billion in claims, with KSh 53 billion paid out so far. President William Ruto has also defended the scheme, saying SHA has paid three times what NHIF ever paid in a year during its first year of operation.
To ease financial burdens for low-income Kenyans, SHA recently introduced a flexible payment mode called Lipa SHA Pole Pole , allowing contributions in installments (daily, weekly, or monthly) via mobile money.