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Govt to Track Mobile Money Use, Car Ownership Records in New Bid to Increase SHIF Contributions

Feb 26, 2025
2 mins read
Govt to Track Mobile Money Use, Car Ownership Records in New Bid to Increase SHIF Contributions

The Government through the Ministry of Health has announced several changes in the implementation of Kenya's new health scheme.

Recently, the Health Ministry raised concerns over low contribution rates to the Social Health Insurance Fund (SHIF), with only 3.3 million out of 19.4 million registered Kenyans actively contributing to the scheme.

Health CS Deborah Barasa and DG Patrick Amoth highlighted this critical funding gap during their weekly briefing at Afya House.

To address ongoing challenges, the Ministry, In a Statement on Tuesday, February 18, announced major reforms to the Social Health Authority (SHA) following public outcry over implementation challenges.

The Ministry of Health has proposed changes in a targeted campaign to increase Social Insurance Fund (SHIF) contributions by self-employed and unemployed Kenyans.

The Ministry announced it would now track mobile money transactions, electricity bill payments, vehicle ownership records, tax returns, among others to better assess SHIF contributions from the unemployed and the self employed class.

The data will be incorporated in the means testing tool being developed with the ministry saying it had already requested for relevant data from institutions such as National Transport and Safety Authority (NTSA), KRA, Communications Authority, among others.

The reforms will also allow Kenyans with irregular incomes to use loans from the Hustlers Fund to pay for The initiative aims to support the informal sector through Insurance Premium Financing (IPF).

Additionally, ICU funding is set to increase from Ksh4,448 to Ksh28,000 per day, while cancer treatment coverage may rise from Ksh400,000 to Ksh550,000 per household per year.

Meanwhile, The Ministry of Health has been put on the spot over low absorption of funds allocated to the Social Health Authority.

The National Assembly’s Health Committee wanted ministry and SHA officials to explain the fact that only about 23 percent of the funds allocated to SHA’s Primary Health Care Fund and the Emergency and Chronic Fund has been spent.

Out of the Ksh6.1 billion allocated to these funds, only Ksh1.44 billion has been utilised.

The development comes even as the Ministry complained that SHA was not receiving enough funds to pay for medical bills.

The Ministry of Medical Services had asked Parliament for Ksh426.8 billion for 2025/26 but received only Ksh172.6 billion, leaving a funding gap of Ksh254.2 billion.

Medical Services PS Harry Kimtai warned that the shortfall, coupled with unfunded exchequer requests and the fallout from USAID funding cuts, is overstretching the department’s capacity to implement Universal Health Coverage and maintain critical hospital operations.

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