The High Court has declared the Social Health Insurance Fund (SHIF) unconstitutional.
In a ruling on Friday, July 12, by a three-judge bench, the court stated that there had been no public participation in the formulation of the fund and that it would burden a few salaried individuals.
Justices Alfred Mabeya, Robert Limo, and Fridah Mugambi gave Parliament until November 20, 2024, to amend the law establishing the new health programme.
"A declaration is hereby issued that the entire Social Health Insurance Fund Act 2023, the entire Digital Health Act 2023 and the entire Primary Health Act 2023 are all unconstitutional for the reasons set out in the judgement and therefore invalid, null and void," the court ruled.
The court's decision is a major blow to the government's health reform plans as it halts the implementation of the SHIF, which was supposed to replace the National Health Insurance Fund (NHIF).
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The ruling came even as the government had begun the process of registering Kenyans with the SHIF.
The Ministry of Health extended the rollout of the SHIF to October 1, 2024, having previously stated that the transition would take place on July 1, 2024.
Under SHIF, Kenyans were required to contribute 2.75 percent of their income to the fund, with low-income earners required to pay Sh300 per month.
Parliament now has 120 days to amend the law establishing the fund.
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