As the government of Kenya continues to reform healthcare and tax policy in Kenya, the Finance Bill 2025 introduces a new proposal that is sparking national conversation: granting tax relief on contributions to the Social Health Insurance Fund (SHIF).
While this may sound like a win for most Kenyan households, many are asking will this truly make healthcare more affordable, or simply add another layer of complexity to the tax system?
What Is the Social Health Insurance Fund (SHIF)?
SHIF is set to replace the current the National Health Insurance Fund (NHIF) framework, expanding healthcare access through a more inclusive model. Contributions will be income-based, and the fund aims to provide essential health care services for all Kenyans under the Universal Health Coverage (UHC) agenda.
What Does the Finance Bill 2025 Propose?
Under the new proposal:
- All contributions made to SHIF will be eligible for tax relief, similar to pension or mortgage relief.
- This means lower taxable income for contributors, and potentially, more take-home pay.
On paper, this is a progressive step towards improving healthcare access and easing the financial burden for millions of Kenyans.
But Is It That Simple?
While tax relief sounds beneficial, it raises several questions:
- Complexity: Will the tax system become more complicated for employers and individuals?
- Fairness: Will this primarily benefit high-income earners who are already taxed more?
- Implementation: Is the SHIF structure ready to deliver quality care as contributions increase?
- Trust: Will the fund be transparent and efficiently managed?
Why Your Voice Matters
The success of SHIF and its tax relief component hinges on public trust, feedback, and understanding. That is why stakeholders, citizens, and employers are being encouraged to participate in the ongoing public consultations.
Your feedback will help shape the implementation strategy, influence amendments, and ensure the policy serves the needs of all Kenyans, not just the privileged few.
Share Your Feedback in 2 Minutes
We are collecting public opinions on SHIF tax relief to be presented in national forums and policy dialogues.
Whether you support the proposal or have concerns, this is your chance to be heard.
Finally, the Finance Bill 2025 marks a bold shift towards integrating tax and health policy in Kenya. If implemented effectively, SHIF tax relief could reduce out-of-pocket healthcare costs, support Universal Health Coverage, and bring tax relief closer to all Kenyans.
But as always, the devil is in the details.
Have thoughts or opinions on this topic? Drop them in the comments or fill out our Respond Here to contribute to the national conversation.