2.75% Mandatory Deduction for Teachers & Civil Servants
The Kenyan government is preparing to introduce new taxation measures that will directly impact citizens’ incomes, a move that is expected to provoke widespread concern and discussion.
This initiative is aimed at generating funds necessary for the achievement of Universal Health Coverage, a crucial objective to enhance the nation’s healthcare system. However, the proposal is likely to encounter mixed reactions due to its potential effect on people’s financial well-being.
Central to this proposition is the 2023 Social Health Insurance Bill (SHIF), which lays the foundation for creating a Social Health Insurance Fund. This fund will replace the existing National Hospital Insurance Fund (NHIF) and will be focused on providing essential preventive, promotive, and primary care services at the community, dispensary, and health center levels.
Additionally, it seeks to establish a robust emergency fund to assist with chronic illnesses, with the goal of alleviating the financial burden on individuals facing such health issues.
Also Read: Intern Teachers Shocked As TSC Deducts House Levy & NSSF
A significant aspect of the government’s strategy involves deducting 2.75% from the gross salaries of over 3 million employed Kenyans. The revenue generated from this deduction will be channeled towards the SHIF, and while the minimum contribution is set at Ksh.300, there is no upper limit on the deductible amount.
President William Ruto defended this decision, asserting that the current fixed contribution system disproportionately benefits higher-income earners, and the revised approach intends to create a fairer healthcare system.
This proposed change also extends beyond the employed segment of the population. Every household, non-Kenyan residents residing in Kenya for more than a year, national and county governments, and other employers will be obligated to contribute to the fund.
Households earning income from sources other than employment will contribute based on their socio-economic assessment, conducted by community health workers.
While the government maintains that these measures are designed to ensure healthcare accessibility for all citizens, some individuals might perceive the proposal as an added financial burden, particularly in times of existing challenges.
President Ruto emphasized that these reforms are crucial to shift healthcare from being a privilege to becoming a right for every Kenyan.
2.75% Mandatory Deduction for Teachers & Civil Servants
