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Teachers and civil servants to suffer more as Ruto proposes a mandatory deduction of 2.75%.

Teachers and civil servants to suffer more as Ruto proposes a mandatory deduction of 2.75%.

The Kenyan government is getting ready to enact new taxation policies that will directly affect residents’ incomes. This decision is expected to spark a lot of anxiety and debate.

The goal of this campaign is to raise the money required to attain universal health coverage, a key goal for improving the country’s healthcare system. However, due to its potential impact on people’s financial wellbeing, the idea is expected to get a range of responses.

The 2023 Social Health Insurance Bill (SHIF), which establishes the groundwork for establishing a Social Health Insurance Fund, lies at the heart of this proposal. The National Hospital Insurance Fund (NHIF) will be replaced by this fund, which will be dedicated to offering crucial preventative, promotional, and primary care services at the level of the community, dispensary, and health center.

In order to lessen the financial strain on people dealing with such health difficulties, it also aims to create a sizable emergency fund to help with chronic illnesses.

Also read: Intern Teachers Shocked as TSC Withholds NSSF & House Levy

The government’s policy includes withholding 2.75% from the gross wages of more than 3 million Kenyans in the labor force. While the minimum contribution is set at Ksh. 300, there is no upper limit on the deductible amount. All proceeds from this deduction will go to the SHIF.

President William Ruto defended this choice, saying the updated strategy aims to build a more equitable healthcare system and that the present fixed contribution structure unfairly benefits higher-income individuals.

Additionally, this proposed adjustment affects people who are not employed. The fund will require contributions from every household, non-Kenyan citizens who have lived in Kenya for more than a year, the federal, county, and other governments, as well as other employers.

Depending on the results of a community health worker-conducted socioeconomic assessment, households with income from sources other than employment will contribute.

Although the government insists that these actions are intended to guarantee everyone’s access to healthcare, some people may view the idea as an additional financial burden, especially in light of current difficulties.

President Ruto stressed the importance of these reforms in making healthcare a right rather than a privilege for all Kenyans.

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