Kenya implements Social Health Insurance Act for universal coverage

President William Ruto’s government has introduced the Social Health Insurance Act, a major reform aimed at providing universal health coverage in Kenya. The law replaces the National Hospital Insurance Fund, which had been the state insurer since 1966 but only covered approximately 25% of the population.

Under the new legislation, the Social Health Authority will oversee a system where all Kenyans, regardless of formal employment status, are expected to register and contribute 2.75% of their income. This move seeks to address the issue of out-of-pocket expenditures, which have historically left many citizens without coverage.

The law has faced significant legal challenges. Petitioners argued that the process lacked adequate public participation and that the mandatory contribution rate placed an excessive burden on citizens. While the High Court struck down parts of the law in July 2024 due to insufficient public engagement, an appeals court has stayed that ruling, allowing implementation to proceed in October 2024.