President Ruto Launches New Payment Method for SHA Insurance Contributions
President Ruto has launched the Lipa Polepole scheme for Social Health Authority insurance contributions, aimed at informal workers. The initiative allows Kenyans to pay premiums in flexible installments. Meanwhile, a World Bank report raises concerns over the funding and rollout of Universal Health Coverage, emphasizing the financial challenges for informal sector workers.
President William Ruto recently unveiled a new payment system, termed the Lipa Polepole scheme, aimed at making Social Health Authority (SHA) insurance contributions more accessible for those in Kenya’s informal sectors. The announcement came during the 62nd Madaraka Day celebrations in Homa Bay, where Ruto stated that individuals would now have the flexibility to make their yearly premiums in instalments.
The president emphasized that this initiative is designed to tackle the issue of irregular premium payments, which has been particularly problematic for those in informal employment. “To address persistent challenges such as irregular premium payments, especially among the informal sector, the government of Kenya is introducing an inclusive payment solution known as lipa SHA polepole,” Ruto said.
With this new directive, families can choose how they want to make payments—be it monthly, weekly, or even daily—based on their individual financial capabilities. “This initiative will enable Kenyans to remit their annual SHA contributions through flexible, manageable installments, whether monthly, weekly, or even daily, based on their financial abilities,” he added.
The creation of this payment plan was a result of collaboration between several entities including the Ministries of Health, Cooperatives, and various financial and mobile network providers, under the Hustler Fund initiative. Ruto noted with optimism that around 50,000 Kenyans have registered for the SHA, which has already extended coverage for treatment to 4.5 million others.
On a related note, last week the World Bank issued a report that cast a shadow on the ongoing Universal Health Coverage (UHC) efforts, which led to the establishment of the Social Health Insurance Fund (SHIF). The Bank’s Public Finance Review released on May 27 urged the government to reassess not only the rollout of this initiative but also the funding strategies linked to it, particularly for those working in informal sectors.
The report voiced concerns over the financial burden the SHIF places on citizens, revealing that the scheme is likely to only generate Ksh67 billion annually, falling short of the Ksh157 billion target. The bank also recommended that low-wage earners in the formal sector be exempt from SHIF contributions to alleviate economic stress and ensure equity in healthcare access.
In summary, President Ruto’s introduction of the Lipa Polepole scheme seeks to facilitate SHA insurance contributions for informal sector workers in Kenya, allowing for flexible payment options. Meanwhile, the World Bank’s report highlights significant challenges facing the Universal Health Coverage initiative, emphasizing the need for a reassessment of its funding and rollout strategies. As SHA coverage expands, the focus may need to shift towards equitable access to healthcare while addressing financial burdens.
Original Source: www.kenyans.co.ke
