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Former Health Cabinet Secretary Mutahi Kagwe has expressed his reservations about the changes in the National Health Insurance Fund (NHIF).

Speaking on Wednesday, June 19, 2024, Kagwe who has not been in the public limelight, boldly stated that he has never comprehended why President William Ruto’s administration introduced the changes to NHIF and replaced it with the Social Health Insurance Scheme (SHIF).

“I have never quite understood the necessity of the changes that happened,” Kagwe stated.

Explaining his stance on the changes, Kagwe argued that instead of scrapping NHIF and replacing it with SHIF, the government should have empowered it.

Kagwe opined that separating the beneficiaries through creating a Primary Health Care Fund, Social Health Insurance Fund and Emergency, Chronic, and Critical Illness Funds would further disadvantage the beneficiaries.

“Money from the exchequer meant for health purposes should be channelled through NHIF as it were. You cannot separate and say that since Social Insurance is here, you separate the mwananchi from the police,” Kagwe noted.

“When you put the same money that you are getting from wananchi in the same kitty and you put the teachers’ money, you can have a more vibrant and successful NHIF that can be able to do everything. The long and short of it is how well-funded it is. The bigger the financial base you create for it, the better,” he argued.

NHIF availability

Kagwe who served under former President Uhuru Kenyatta’s administration warned that scrapping of NHIF will make it difficult for some beneficiaries especially those in marginalised areas to access services.

The former Cabinet Secretary asserted that NHIF is available in various parts of the country unlike the private social covers set to be introduced.

Proposed changes

The new Social Health Insurance Scheme fund is categorized into segments including the Emergency Chronic and Critical Illness Fund, Social Health Insurance and Primary Health Care Fund.

The new health scheme is projected to collect at least Ksh148 billion every year to fund improved services.

In a bid to raise the funds, every citizen will be required to contribute a statutory monthly deduction of 2.75 per cent of their household income.

The new fund is expected to replace NHIF starting from July 2024.

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