Nairobi — The Ministry of Health and the Judiciary appeared to be pulling from different sides over the implementation of the Social Health Insurance Fund (SHIF), following a High Court ruling that declared mandatory deductions unconstitutional.
Justice Chacha Mwita sparked off the disagreement when he ruled that the mandatory 2.75 per cent deduction from gross income for SHIF amounts to double taxation, deeming it unlawful.
He stated the levy imposes an additional financial burden on income that has already been subjected to tax under the Income Tax Act.
The case had been filed by four medical practitioners, who not only contested the legality of the deductions but also raised concerns over the handling of personal data during the transition from the National Health Insurance Fund (NHIF) to SHIF.
In a swift rejoinder, Health Cabinet Secretary Aden Duale maintained that the 2.75 per cent contribution remains enforceable under existing tax laws, despite the High Court's ruling.
Duale clarified that the petition primarily challenged the transition of data from NHIF to the Social Health Authority (SHA) and the statutory deductions.
"The Court, recognising that the core issues raised in the petition are already under active consideration by the Court of Appeal, declined to issue any orders and struck out the petition," he said in a statement.
