Government Launches Flexible SHA Payment Plan for Informal Workers
President William Ruto has announced a new payment method under the Social Health Authority (SHA) insurance scheme, aimed at helping Kenyans in the informal sector contribute more easily.
This new initiative, named Lipa Polepole, will allow citizens to pay their annual health insurance premiums in flexible instalments.
While addressing the nation during the 62nd Madaraka Day celebrations held in Homa Bay, President Ruto stated that the government understands the struggles many Kenyans face in making lump-sum payments for insurance.
To ease this burden, the Lipa SHA Polepole plan will let people pay in smaller amounts, at intervals that suit them—be it monthly, weekly, or even daily.
“To overcome the ongoing issue of inconsistent premium payments, particularly among informal workers, the government is launching an inclusive and accessible solution called Lipa SHA Polepole,” Ruto explained.
He said the system is designed to meet people where they are financially, allowing them to pay their yearly SHA insurance contributions through a plan that fits their budget.
President Ruto further highlighted that this new payment option was developed through cooperation between various government departments, including the Ministry of Health and the Ministry of Cooperatives.
The rollout will also be supported by financial institutions and mobile service providers under the Hustler Fund initiative. This collaboration is intended to make the payment process simple, reliable, and reachable even to Kenyans in remote areas.
The President also revealed that so far, 50,000 Kenyans have already enrolled in the SHA scheme. He added that the authority has facilitated full treatment coverage for 4.5 million Kenyans to date—a strong indicator of its potential to improve healthcare access across the country.
Despite these efforts, the World Bank recently raised concerns over the structure and rollout of the Universal Health Coverage (UHC) reforms, which led to the creation of the Social Health Insurance Fund (SHIF).
In a report released on May 27, titled Public Finance Review (PFR), the global financial institution advised the government to reconsider its current strategy.
The World Bank pointed out that trying to implement SHIF in a country where informal employment is widespread could result in major financial challenges.
Their analysis estimated that the government would only be able to collect Ksh67 billion per year through SHIF—far below the projected need of Ksh157 billion annually to effectively fund the program.
Additionally, the World Bank recommended that the government reduce the burden on low-wage earners in the formal sector by exempting them from SHIF contributions. Instead, it proposed that the focus of premium collections be on those working in the formal sector.
For informal sector workers and vulnerable citizens, the bank advised that the government offer full subsidies to ensure that no Kenyan is left behind in accessing quality healthcare.
The suggestions aim to make healthcare more equitable and affordable, especially for those who struggle to meet financial demands.
With the new Lipa SHA Polepole plan and further policy adjustments, the government hopes to build a more inclusive and sustainable health insurance system for all Kenyans.
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