President Ruto Introduces New Lipa Polepole Payment Method for SHA Insurance

President William Ruto has announced a new Lipa Polepole payment scheme for Social Health Authority insurance aimed at Kenyans in the informal sectors. This allows for yearly premiums to be paid in manageable installments. The initiative is a result of collaboration between various ministries and is partly a response to potential financial risks associated with the Universal Health Coverage.

In a significant move, President William Ruto has unveiled the Lipa Polepole payment scheme aimed at assisting those enrolled in the Social Health Authority (SHA) insurance, particularly benefiting Kenyans in the informal sectors. This announcement was made during the 62nd Madaraka Day celebrations held in Homa Bay, promising a shift to more manageable payment options for insurance premiums.

Under the new scheme, Kenyans will have the flexibility to pay their yearly premiums through installments rather than a lump sum. “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,” Ruto explained. The initiative is designed to ease the financial burden, allowing families to tailor their payments to fit their financial situations.

Ruto further elaborated that this is a collaborative effort, highlighting a partnership involving the Ministries of Health, Cooperatives, financial institutions, and mobile operators through the Hustler Fund. Such cooperation is anticipated to smooth out the payment process and enhance accessibility for informal workers.

Moreover, the initiative comes at a time when only 50,000 Kenyans have registered for the SHA. The program has reportedly provided treatment coverage for about 4.5 million individuals, yet challenges persist. Just last week, the World Bank issued a warning to the Kenyan government regarding the existing framework for Universal Health Coverage (UHC), which gave rise to the Social Health Insurance Fund (SHIF).

In its Public Finance Review report released on May 27, the World Bank called for a reevaluation of the SHIF strategy, particularly emphasizing the financial strain on workers from the informal sector. The report projected that the scheme’s potential revenue generation would fall short, raising only Ksh67 billion annually against an ambitious target of Ksh157 billion.

Additionally, the World Bank recommended that the government consider exempting low-wage earners within the formal sector from SHIF contributions. The lender stressed the need to concentrate collection efforts on workers in the formal sector while advocating for government subsidies aimed at informal workers and other vulnerable groups. This could help ensure equitable access to health care for all citizens, highlighting the complexities and challenges of implementing such health financing initiatives in a largely informal economy.

In summary, President Ruto’s introduction of the Lipa Polepole payment method aims to enhance accessibility to health insurance for informal sector workers, allowing for flexible payment schedules. However, significant concerns persist about the funding sustainability and equity within the broader healthcare system, as highlighted by the World Bank. The recommendations from the bank underscore the need for careful reevaluation of the program amidst the challenges that lie ahead.

Original Source: www.kenyans.co.ke