Government to Introduce Mobile Money Deductions for SHA Payments
The Kenyan government is introducing a new way for people in the informal sector to contribute to the Social Health Authority (SHA) using mobile money.
According to Moses Kuria, a Senior Advisor in the Council of Economic Advisors to the President, Kenyans will soon be able to set up small daily deductions from their mobile wallets to pay for their health insurance.
Speaking in Nandi County on Wednesday, April 2, during the launch of Community Health Promoters (CHPs) and the Boda Boda Incentive Programme for Mass Registration of Taifa Care, Kuria revealed the government’s plan to make health insurance payments more convenient for informal workers.
New Payment Model for SHA Contributions
Under the Social Health Insurance Act of 2023, every adult Kenyan is required to contribute Ksh500 per month to SHA. However, the law also provides a means-testing system to determine how much people in the informal sector should pay based on their income levels.
Many informal sector workers have struggled to make the mandatory contributions, leading to the introduction of a new payment model.
To address this, the government plans to launch a “Lipa Pole Pole” system, allowing Kenyans to make small, flexible payments through mobile money. Kuria explained that the government would partner with mobile service providers to enable automatic deductions for SHA payments.
“We want to simplify the process and introduce a major change. Governor Cleophas Lagat, you’re lucky because this new system will be launched right here, where people can subscribe and have their contributions deducted automatically,” Kuria stated.
How the System Will Work
The new SHA payment system will be voluntary, allowing Kenyans to subscribe and choose small, manageable deductions—starting from as little as Ksh50. Kuria emphasized that the deductions would be automated, ensuring that subscribers meet their health insurance obligations without struggling to pay Ksh500 all at once.
He likened the system to Kenya’s popular call tune subscriptions, where users are charged as little as Ksh1 per day to maintain a custom ringtone.
“Before you even think of other expenses, you will receive a small deduction notification on your phone, and just like that, your SHA contribution will be taken care of,” he assured.
Addressing Public Concerns
After Kuria’s announcement, rumors circulated that the government planned to forcefully deduct money from people’s mobile money accounts.
However, he dismissed these claims, insisting that the new system is purely voluntary and meant to encourage more people to contribute.
To further boost registration, Kuria also introduced an incentive for Community Health Promoters (CHPs). Each CHP will receive Ksh20 for every new person they sign up for SHA.
The State of SHA Registration
According to the latest figures from the Ministry of Health, a total of 20.8 million Kenyans have already registered under SHA, along with 5.7 million dependents. The counties leading in SHA registrations include Mombasa, Bomet, Nyeri, Elgeyo Marakwet, and Kirinyaga.
However, despite these high registration numbers, the government has observed that only 5 million people are actively contributing to SHA.
This low participation has led authorities to explore alternative strategies—such as mobile money deductions—to increase contributions and ensure the success of the new healthcare scheme, which replaced NHIF in October 2024.
The introduction of Lipa Pole Pole aims to reduce the financial burden on Kenyans and increase accessibility to quality healthcare under SHA.
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