Government unveils 'lipa SHA pole pole' for informal sector
Speaking during the 62nd Madaraka Day celebrations in Homa Bay, Ruto said the plan will allow Kenyans to pay their yearly health premiums in instalments or through a flexible schedule.
President William Ruto has introduced a new payment plan for health insurance contributions under the Social Health Authority, targeting Kenyans working in the informal sector.
Speaking during the 62nd Madaraka Day celebrations in Homa Bay, Ruto said the plan will allow Kenyans to pay their yearly health premiums in instalments or through a flexible schedule.
“To address persistent challenges such as irregular premium payments, especially among the informal sector, the government of Kenya is introducing an inclusive payment solution known as lipa SHA polepole,” Ruto announced.
The flexible payment option aims to make it easier for informal workers to enrol and stay covered under the national health scheme.
According to the Head of State, the new directive will enable families to make payments in installments based on their preference.
"This initiative will enable Kenyans to remit their annual SHA contributions through flexible, manageable installments, whether monthly, weekly, or even daily, based on their financial abilities," Ruto said
He said the new plan has been made possible through a partnership involving the Ministries of Health and Cooperatives, as well as financial and mobile network providers working through the Hustler Fund.
The announcement comes just days after the World Bank raised concerns over the government’s approach to Universal Health Coverage (UHC), which led to the formation of the Social Health Insurance Fund (SHIF).
In its latest Public Finance Review report released on May 27, the World Bank called for a review of both the rollout and the funding model of SHIF, especially the impact on citizens in the informal sector.
The bank warned that implementing SHIF in an economy where informal employment dominates would face serious funding challenges, estimating that the scheme would raise only Sh67 billion annually against a target of Ksh157 billion.
It also advised the government to exempt low-wage earners in the formal sector from contributing to SHIF.
