Kampala — The long-awaited social health insurance scheme (SHI) is to become operational in July 2007, the commissioner for health in charge of planning, Dr. Francis Runumi, said on Monday.

He said the scheme would first target employees of both the formal and informal sector.

He said Cabinet on May 19 passed the principle to establish the policy and that the ministry was drafting a bill to be presented to parliament to establish the scheme.

"We first want to start with those who earn salaries from either the formal or informal sector. We expect to raise about US$50m," Runumi said.

He was on Monday presenting a paper on the principals of social health insurance to a stakeholders' meeting in Mbale.

He said employees would contribute 4% of their monthly earnings and em-ployers would contribute 4% of their employee's earnings to the scheme.