NHIF to SHIF: Kenyans react as Safaricom announces KSh 104b investment in new health insurance

• The government has announced plans to fully implement the Social Health Insurance Fund (SHIF) in October 2024.
• On Saturday, September 21, Safaricom PLC cleared the cloud over its involvement in a new healthcare program in Kenya
• An investment of 104 billion shillings from the country’s leading telecom company has sparked debate among Kenyans

TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial, business and technology journalism and offers in-depth knowledge of economic trends in Kenya and the world.

Kenyans have expressed concern after Safaricom announced its participation in a government healthcare programme.

President William Ruto’s administration has ordered all Kenyans to register for the Social Health Insurance Fund (SHIF) by October 1, 2024, ahead of the transition from the National Hospital Insurance Fund (NHIF).

How is Safaricom investing in SHIF?

Safaricom is part of the consortium entrusted with the implementation of the Integrated Healthcare Information System (IHTS).

The consortium, which includes Apeiro Limited and Konvergenz Network Solutions, will invest over 104 billion Kenyan shillings over ten years to implement, maintain and support IHTS.

Safaricom said it will deliver digital solutions aimed at streamlining the functioning of healthcare facilities, improving transparency in the pharmaceutical supply chain and ensuring the security of the healthcare data infrastructure.

What Kenyans said about Safaricom’s investment in SHIF

The statement by a leading Kenyan telecommunications company sparked debate among Kenyans, with some questioning the value of the investment.

John Orimbo wrote:

“A great move that we’ve been waiting for for a long time, although I’m really worried about the 104 billion shilling capital – it seems a bit over the top to me!”

Ngigi Mungai argued:

“Safaricom has done so well over the years that we can’t deny that fact. But Safaricom and the government doing deal after deal seems suspicious to me.”

Wachira Arap Josephat asked:

“Why does it seem to be being rebuilt and when will it be operationalized? Is it also a PIP project?

Abraham Maritim wondered:

“That was the whole point of changing from NHIF to SHIF. It was all about capital expenditure for the system. What was so wrong with NHIF that it couldn’t be fixed?”

Mutembei Kathiari Snr said:

“Continue to violate our privacy with this Government, you are speeding, soon you will transfer blocked savings to KRA, spying on our private communications.”

@KiproMw noted:

“Apiero doesn’t even seem to have a website…”consortium”.”

@clement_kemboi asked:

“So the technological transition from NHIF to SHIF will cost 104 billion shillings?”

@reggaeholic_ asked:

“Can you justify this cost down to the last coin, because it looks like a 100+B grab to me for one system? What good does that do?”

Are there any penalties for late registration with SHIF?

This comes after NHIF acting director general Elijah Wachira issued guidelines directing employers and individuals to register with SHIF before October 1, 2024.

Wachira explained that funds transferred after November 9, 2024, will be credited to the Social Health Authority (SHA) account.

The announcement sparked debate among Kenyans, with some expressing concern over court decisions blocking the implementation of the law.

Proofreading: Mercy Nyambura Guthua, journalist and editor at TUKO.co.ke

Source: TUKO.co.ke