• Employed Kenyans are required to contribute 2.75% of their gross monthly salary to the Social Health Insurance Fund.
• Those earning KSh 100,000 gross will contribute KSh 2,750 per month, or KSh 33,000 per year, while those earning KSh 35,000 will have KSh 963 deducted.
• The highest monthly NHIF premium for those earning KSh100,000 or more was KSh1,700, while the lowest premium was KSh150.

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial fields, businessand technology reports and provides in-depth insight into Kenyan and global economic trends.

Kenyans on social media frustrated with increase payslip deductions that reduced their net income.

This follows the transition from the National Hospital Insurance Fund (NHIF) to the Social Health Authority (SHA).

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Employed Kenyans are required to contribute 2.75% of their monthly gross salary to the Social Health Insurance Fund, a new program aimed at strengthening universal health coverage.

According to Citizen TV, the implementation of the SHA on October 1 increased deductions from pay slips to 4.25% of gross salary.

How SHIF will affect Kenyans’ pay slips

For people earning KSh 35,000 per month, SHIF will deduct KSh 963.

People with a gross salary of KSh 100,000 will contribute KSh 2,750 per monthor Sh33,000 per annum.

Meanwhile, Kenyans who earn KSh200,000 gross salary per month would pay KSh5,500 to SHIF every month, or KSh66,000 per year.

Highest month NHIF the bonus for those earning KSh100,000 or more was KSh1,700, while the lowest bonus was KSh150.

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How Kenyans reacted to falling incomes

TUKO.co.ke sampled some comments:

Mosh:

“With SHIF/SHA, this is a typical payslip; remember, this person has not yet been deducted KSh5,000 HELB and KSh3,000 pension. So the final salary is d ‘around 30,000 KSh. Hajalipa rent, transport, food na sherehe kidogo juu stress inammaliza and the cycle continues.

Doudou KE:

“My first SHA deduction just showed up on my pay stub, and it’s totally heartbreaking. Everything about this SHIF/SHA thing is wrong.”

Glory Kathure:

“Another day to remind you that if you have a salary slip, you are an enemy of the Kenya Kwanza government. The SHA/SHIF deductions increased based on your salary bracket are discriminatory, but they give you little benefit benefits.”

Beatrice Marshall:

“Why does the government tax everything on the gross salary? 1.5% housing tax (separate law) imposed on the gross and 2.75% of the SHIF as well. However, we already pay PAYE at 30-35% on gross. So we are now taxed between 35-40%?

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Code Fairy:

“I was looking at my pay stub from last month and this month because I received less than I expected after the new SHA deduction; guess what? The PAYE deduction increased.”

Godfrey:

“When the real scammer is in power. Tighten your belt. Soon most employees will be walking around town depressed and confused. An example of a deduction showing the CAPS effect on the pay stub.”

Which banks will manage contributions to the CAPS?

The government chose six banks to manage the SHIF employer contributions.

Principal Secretary (PS) for Medical Services Harry Kimtai revealed that the Social Health Authority (SHA) had designated Commercial Bank of Kenya (KCB), Equity Bank, Co-operative Bank, Sidian Bank, ABSA and Diamond Trust Bank (DTB) to raise the funds.

Kenyans opposed the poor CAPS benefits compared to the NHIF. They argued that the contributions were disproportionate to the minimum coverage.

Source: TUKO.co.ke