Mumias East Member of Parliament Peter Salasya has submitted a legislative proposal to overhaul the Social Health Authority (SHA) framework, headlined by a plan to introduce a flat monthly contribution for every Kenyan.
In a letter delivered to National Assembly Speaker Moses Wetang’ula on Saturday, April 11, Salasya proposed several amendments to the Social Health Insurance Act of 2023, pointing to what he calls deep operational and financial failures within the current system.
The core of the MP’s proposal involves scrapping income-based annual contributions in favor of a standard Sh500 monthly fee for all registered members. Salasya argues that returning to a flat-rate model, similar to the one used by the defunct National Hospital Insurance Fund (NHIF), ensures affordability and simplifies the contribution process for the entire population.
“SHA needs to be self-sustainable and not depend on exchequer funding by having a lot of money to support many Kenyans,” Salasya stated in the letter. He argued that the current system struggles with low compliance, noting that millions of registered members fail to make regular payments. His proposal highlights a stark gap in the fund’s sustainability: while approximately 29 million people have registered under SHA, only about 5 million actively contribute.
To address these gaps, the MP advocates for a more predictable payment structure.
“The proposed legislative proposal, therefore, seeks to introduce a uniform and affordable monthly contribution framework where Kenyans will pay monthly contributions, instead of annual contributions, as they did under NHIF. This is through the introduction of a flat rate of premium of Ksh 500 per month for all persons,” read part of the letter.
Beyond financial restructuring, the legislator demanded the immediate reinstatement of the Linda Mama programme. He contended that suspending the initiative has crippled access to maternal healthcare and forced expectant mothers to shoulder high out-of-pocket costs at a time when they are most vulnerable.
Salasya further seeks to introduce a provision for voluntary contributions, allowing Kenyans to pay on behalf of other beneficiaries or contribute to a national solidarity pool designed for indigent and vulnerable citizens. In a move to slash bureaucracy and boost efficiency, his proposal calls for the consolidation of the three existing funds – the Primary Healthcare Fund, the Social Health Insurance Fund (SHIF), and the Emergency, Chronic, and Critical Illness Fund – into a single, unified pool.
To address the recurring issue of delayed payments to medical facilities, the bill introduces a new section requiring the SHA to settle all verified hospital claims within 60 days. This legislative push surfaces as public outcry grows over alleged irregularities and the loss of millions within the scheme. While the Ministry of Health continues to dismiss these allegations of financial impropriety, its own records show that SHA has registered over 30 million members since its launch in 2024.
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