The 58-year-old National Health Insurance Fund (NHIF) transitioned to the Social Health Insurance Fund (SHIF) on 1 October 2024. What will happen to your NHIF contributions when you move to SHIF? That is one of the questions Kenyans are asking to understand the new medical scheme.
True Facts About What Will Happen To Your NHIF Contributions When You Move To SHIF.
The migration to SHIF and NHIF’s dissolution requires many Kenyans to contribute more to the new public health scheme. Many Kenyans wonder what will happen to the funds they had contributed to NHIF.
The state has addressed this concern to allay public fears that the existing NHIF funds will disappear. Once SHIF comes into effect, the funds will be transferred to the new scheme.
The transition from NHIF to SHIF results from the 2023 Social Health Insurance Act (SHIA). This legislation places the management of SHIF under the Social Health Authority (SHA) to oversee the management of contributors’ funds.
Under this new management plan, SHA will check every member’s current NHIF balance and transfer it as a contribution to SHIF.
With the transition in progress, the government instructs that all payments received on or before 9 October 2024 will be credited to NHIF, and contributions made after 9 November 2024 will be credited to SHA.
That leaves contributors wondering if NHIF still exists despite SHIF taking effect from 1 October 2024. There is a gap between 9 October and 9 November 2024 when money will go to the incumbent NHIF.
So, what will happen to your NHIF contribution when you move to SHIF? Every payment will be accounted for and any payments made between October 9th and November 9th will be credited to SHIF.
Change in Contributions Rates
Kenyans continue to show dissatisfaction with the new medical scheme amidst hiccups in its implementation.
SHIF requires them to make higher payments to receive services in medical institutions. The rates confirm the government’s commitment to providing essential health services even to low-income households.
The latest NHIF contribution rate has been a standard 2.75% of the gross monthly income for salaried members. That is the prevailing SHIF rate, which further pegs the minimum payment to Kshs 300.
That amount accrues from the salary earned in the preceding month of employment.
Furthermore, the contribution comes from the employee only. The new SHIF regulations will define gross monthly income under SHA, which must be clarified.
NHIF vs SHIF Comparison Table
| GROSS PAY | NHIF | SHIF |
| 20,000 | 750 | 550 |
| 50,000 | 1,200 | 1,375 |
| 100,000 | 1,700 | 2,750 |
| 200,000 | 1,700 | 5,500 |
| 500,000 | 1,700 | 13,750 |
| 1,000,000 | 1,700 | 27,500 |
Value in SHIF Tariffs
Many feel that the services offered under SHIF do not align with the hiked contributions compared to the now-dissolved NHIF.
In its defence, the government provides benefits unique to SHIF, including significantly increased tariffs or benefits for SHIF members.
A comparison between SHIF and NHIF shows that the government claims to extend outpatient services to members who still need to update their payments.
Does it mean that making monthly payments to receive treatment is not mandatory? The scheme has a package of benefits for each member, depending on the nature of the subscription.
Registration to SHIF
Employers have been urged to advise employees to register using the employer’s SHA portal. This arrangement will enable employers to manage their payroll and remit their staff’s contributions.
The arrangement requires employers to create and verify their accounts so employees can register.
Employees who have been members of NHIF receive a dedicated link. The link lets them update their details as they complete their registration with SHA. After that, the employer remits employee contributions to SHIF.
As the employer helps the government implement the statutory deduction, the employees feel dissatisfied with the deduction framework.
The reason is that the government requires middle- and high-income earners to pay more for SHIF than for NHIF.
The low earners pay less than they did for NHIF, which makes the higher earners feel burdened in tough economic times. The transition to SHIF marks the government’s goal of providing quality and inclusive healthcare.
Final Thoughts
As the new and enhanced medical scheme SHIF comes into effect, there are mixed reactions, and many aspects of its management require more explanation to the members. The fund managers must move quickly and transparently to provide information and services as promised in the SHIF mandate.
Such efficiency will go a long way in answering the questions members wish the government to respond to. For now, the main question is: what will happen to your NHIF contributions when you move to SHIF?
