Details of Bill Seeking to Replace SHA Contributions With Ksh500 Monthly Fee

Peter Salasya, the Member of Parliament for Mumias East, has introduced a new proposal that could change how Kenyans contribute to the Social Health Authority (SHA).

In a letter sent to Moses Wetang’ula on April 11, Salasya suggested changes to the Social Health Insurance Act. He said the current SHA system is facing serious financial and operational challenges.

One of the main ideas in the bill is to introduce a fixed monthly contribution of Ksh500 for every Kenyan registered under SHA.

Salasya wants to replace the current system, where people pay based on their income, with a simple flat rate. He believes this will make it easier and more affordable for everyone to contribute.

According to him, a similar system worked under the former National Hospital Insurance Fund, where contributions were easier to manage.

He explained that SHA should be able to support itself financially without relying heavily on government funding. A fixed monthly fee, he says, would help raise enough money to support more Kenyans.

Concerns Over Low Contributions

The MP raised concerns about low participation in the current system. Although millions of Kenyans are registered under SHA, only a small number are actively contributing.

This, he says, puts the entire health fund at risk and makes it difficult to provide services effectively.

Call to Bring Back the Linda Mama Programme

Salasya also wants the government to bring back the Linda Mama programme.

He argued that removing the programme has made it harder for pregnant women to access affordable healthcare, forcing many to pay more from their own pockets.

The proposal also includes plans to allow:

• People to contribute on behalf of others
• Creation of a national fund to support poor and vulnerable citizens

This is meant to ensure that even those who cannot afford the contributions can still access healthcare services.

Merging of SHA Funds

Another major change is the plan to combine all SHA funds into one pool. Currently, SHA operates:

• Primary Healthcare Fund
• Social Health Insurance Fund (SHIF)
• Emergency, Chronic and Critical Illness Fund

Salasya believes merging these funds will reduce confusion and improve efficiency.

Faster Payments to Hospitals

The bill also suggests that SHA should pay hospitals within 60 days after receiving verified claims. This aims to reduce delays that have affected healthcare services.

Controversy Around SHA

The proposal comes at a time when SHA is facing criticism over alleged financial irregularities and loss of funds. However, the Ministry of Health has denied these claims.

Current Contribution Rates

At the moment:

• Salaried Kenyans contribute 2.75% of their monthly salary
• Those in the informal sector pay a minimum of Ksh300 per month

SHA has registered over 30 million members since it was introduced in 2024.

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