Health Cabinet Secretary Aden Duale has affirmed that the mandatory 2.75% contribution to the Social Health Insurance Fund (SHIF) remains legally in force, following a High Court ruling that dismissed a petition challenging the new health system.
In a statement issued on Monday, June 23, Duale said the Ministry of Health welcomes the decision delivered by Justice Chacha Mwita on the case that had challenged the transition of health data from the National Health Insurance Fund (NHIF) to the Social Health Authority (SHA) and the legality of the 2.75% statutory deduction.
"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 by Justice Mwita on June 13, 2025.
"This Petition challenged the transition of data from the National Health Insurance Fund (NHIF) to SHA, as well as the statutory 2.75% contribution to the Social Health Insurance Fund (SHIF)," he said.
Duale explained that the court, having noted that the main issues raised were already under active review by the Court of Appeal, chose not to interfere and struck out the petition.
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"The Court, recognizing that the core issues raised in the petition are already under active consideration by the Court of Appeal, declined to issue any orders and struck out the petition,” he added.
Duale assured the public that the implementation of the SHA system continues uninterrupted and within the confines of the law.
He added that SHA operates fully within the legal framework set out by the government’s Universal Health Coverage agenda.
"We wish to reassure all Kenyans and our institutional partners that: The 2.75% contribution remains legally in force and is now recognized as tax-deductible under the Tax Laws (Amendment) Act, 2024.
"SHA continues to operate within the legal framework provided by the Universal Health Coverage laws—the Social Health Insurance Act, the Digital Health Act, and the Primary Health Care Act—all of which are designed to uphold equity, financial protection, and access to quality health services for all Kenyans,” he further said.
On the ongoing transition from NHIF to SHA, Duale emphasized the government’s commitment to ensuring a smooth and citizen-friendly process.
"We remain committed to a transparent, rights-based, and citizen-centered transition from NHIF to the SHA system. Data protection and continuity of service remain top priorities throughout this process,” he affirmed.
