Govt to Audit Lifestyles of Jobless & Self-Employed Kenyans Evading SHIF Payments

The government plans to carry out a special lifestyle audit on unemployed and self-employed Kenyans to determine the amounts they should contribute to the Social Health Insurance Fund (SHIF). 

Health CS Susan Nakhumicha disclosed that the tracker would consider factors such as where one lives and their regular expenses to determine their capacity to contribute to the new body that replaces the National Health Insurance Fund (NHIF). 

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The government has in the past faced difficulty estimating incomes among the self-employed - as well as from some Kenyans who are informally employed but typically claim to be unemployed to avoid tax and other statutory contributions. The CS noted that the new tracking tool is scientific enough to detect Kenyans who may try to under-represent their means. 

"You cannot hide your economic characteristics. If I look at the watch you are wearing, I can give an estimate of what your income is. I want to speak to Kenyans, you don’t have to hide, this is your health, take care of your health. 

"If you live in a grass house, it cannot be hidden. We will observe the economic characteristics of the unemployed to see how they will contribute.

The CS added that as a result of the efforts made in digitising financial transactions, the government could easily verify one’s income by looking at their M-pesa and ATM transactions.

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She encourages Kenyans to be truthful in their declaration noting that the contributions made to the SHIF would help enhance medical care for all contributors and to the country in general. 

"We have a means-testing tool which is a scientific tool that has been developed and it is self-testing. It is you saying that this is me, I am in an informal setting and this is how much I make in a year and therefore the calculation for my 2.75 percent will be this much."

Starting July 1, 2024, salaried Kenyans will be subjected to a mandatory SHIF deduction that is equivalent to 2.75% of their gross monthly salary. The registration deadline for this is June 30.

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Those who are self-employed will make annual contributions that will be self-declared based on their household incomes. 

Unemployed Kenyans will also declare zero income and if in doubt, the tracking tool will be used to determine whether that’s true.  If it is, they will fall in the bracket of the disadvantaged and vulnerable and the government will provide coverage without them being required to make payments. 

The registration process can be done online,  via mobile phone, by community promoters, or by visiting the Social Health Authority offices near you. You then need to visit your health facility for finalisation which involves taking your biometrics.