In a recent TikTok Live session, former Deputy President Rigathi Gachagua strongly criticized President William Ruto over the new Social Health Authority (SHA) project, which has caused a stir among Kenyans. Gachagua claimed that Ruto ignored the possibility of upgrading the National Health Insurance Fund (NHIF) to the proposed SHA system.
The new initiative, which has already cost approximately Ksh110.9 billion, includes Ksh6.1 billion for the SHA system itself and Ksh104.8 billion for the necessary technology infrastructure.
During his live broadcast on Thursday morning, Gachagua outlined that under the proposed changes, the cost of healthcare coverage for families could have been reduced to Ksh300, a significant drop from the current costs.
He emphasized that the SHA project, which was launched last October, has faced numerous challenges and is being implemented poorly.
He revealed that experts had suggested a simpler approach, where NHIF could have been reformed for only Ksh800 million, a far cry from the massive expenditure of Ksh104 billion for the SHA system.
The former Deputy President, who has become more outspoken since losing his position last year, expressed his concerns about the unnecessary rollout of the new healthcare system.
He questioned the rationale behind spending such a large amount on the SHA when a more affordable alternative could have been pursued.
Gachagua reminded the public that the original plan under Kenya Kwanza was to reduce healthcare contributions for families from Ksh500 to Ksh300, while also broadening the coverage to include all illnesses and chronic conditions.
Although the idea behind the program was sound, Gachagua argued that its rushed implementation and lack of consultation with relevant stakeholders have led to its failures.
He pointed out that Kenya Kwanza’s proposal aimed to ease the financial burden on families by reducing the monthly payment to Ksh300, covering the entire family.
However, the plan for salaried employees requires them to contribute 2.75 percent of their monthly salary, with a minimum of Ksh300. For those in the informal sector, the same 2.75 percent applies, but it’s based on their annual household income, with the same minimum contribution of Ksh300.
Despite the mounting criticism, President Ruto has remained steadfast, claiming that the SHA system is functioning as intended. However, Gachagua believes that it is not too late for the government to revert to the NHIF system, which he insists had a clear, cost-effective path for reform.
He emphasized that the option to return to NHIF could still save the country money and provide a better healthcare system for Kenyans.
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