President Ruto Launches Lipa Polepole Scheme for Health Insurance Payments
President William Ruto has introduced the Lipa Polepole payment scheme for Social Health Authority insurance contributions aimed at informal sector workers in Kenya. This new initiative allows for flexible installment payments. Meanwhile, the World Bank has raised concerns over funding challenges for the Social Health Insurance Fund, calling for adjustments to ensure sustainable and equitable healthcare access.
In a recent announcement, President William Ruto launched the Lipa Polepole scheme, a new payment method for the Social Health Authority (SHA) insurance contributions, aimed primarily at Kenyans working in informal sectors. During the 62nd Madaraka Day celebrations held in Homa Bay, Ruto revealed that this initiative allows individuals to pay their annual premiums in instalments or adopt a more flexible payment arrangement.
Ruto stated, “To address persistent challenges such as irregular premium payments, especially among the informal sector, the government of Kenya is introducing an inclusive payment solution known as lipa SHA polepole.” This new plan is designed to accommodate families, enabling them to make payments based on their financial circumstances, allowing for a range of payment options, be it monthly, weekly, or even daily.
The introduction of this payment plan results from a collaboration involving various sectors: the Ministries of Health and Cooperatives, coupled with financial bodies and mobile network operators through the Hustler Fund. The hope is to create a more sustainable and friendly system for users.
As of now, Ruto noted that approximately 50,000 Kenyans have already registered with the SHA, with the authority successfully providing treatment coverage for about 4.5 million individuals. However, challenges loom. Just last week, the World Bank called on the Kenyan government to reassess its approach to the Universal Health Coverage (UHC), which led to the formation of the Social Health Insurance Fund (SHIF), amidst rising discontent amongst citizens.
The World Bank’s report, released on May 27, titled “Public Finance Review (PFR),” emphasized the urgency of reviewing the rollout and funding strategies of SHIF. They highlighted the growing financial burden on informal sector workers, cautioning that attempting to implement SHIF within a primarily informal employment landscape might lead to severe funding limitations. The bank attributed a modest annual estimate of Ksh67 billion for the scheme, a figure far below the anticipated Ksh157 billion target.
Furthermore, the World Bank suggested that the government exempt low-wage formal sector workers from SHIF contributions, advocating for a targeted funding model that focuses on those in formal employment, while the government should directly support contributions for informal workers and other at-risk groups. This way, equity in healthcare access can be promoted more effectively.
President Ruto’s new Lipa Polepole scheme aims to ease the financial burden of health insurance payments for Kenyans in informal sectors. While this initiative may help improve coverage, the advice from the World Bank raises crucial concerns about the financial viability of the existing healthcare funding system. As the government navigates these challenges, a balanced approach appears essential for ensuring equitable healthcare access for all Kenyans.
Original Source: www.kenyans.co.ke
