Former Health CS Kagwe Decries New SHIF Health Fund as Ineffective Former Health Cabinet Secretary Mutahi Kagwe has expressed strong criticism against the recently launched Strategic Health Insurance Fund (SHIF), claiming that it will not achieve its intended goals. In a statement released on Monday, Kagwe argued that the fund, which aims to provide universal health coverage to all Kenyans, is not sustainable and will face numerous challenges in its implementation. Kagwe stated, “The SHIF Health Fund is a poorly conceived and hastily implemented scheme that will not work. It lacks a clear financing mechanism and will be a burden on the national budget.” He pointed out that the government is already struggling to fund existing health programs, and the additional costs of SHIF will only exacerbate the financial crisis. Kagwe also questioned the fund’s lack of clarity on how it will address the issue of pre-existing conditions. “Many Kenyans have pre-existing health conditions that would make them ineligible for coverage under the new fund. How will the government ensure that these individuals have access to affordable healthcare?” he asked. Furthermore, Kagwe criticized the fund’s governance structure, stating that it gives excessive power to politicians and bureaucrats. He warned that this could lead to corruption and mismanagement. “The SHIF Health Fund is a political gimmick designed to garner support for the government. It will not provide the comprehensive healthcare coverage that Kenyans deserve,” Kagwe emphasized. He urged the government to reconsider the fund and engage in broader consultations with healthcare experts and the public before implementing any major changes to the health system. Kagwe’s comments have sparked a heated debate on the merits of the SHIF Health Fund. Supporters of the fund argue that it will provide much-needed access to healthcare for millions of Kenyans who currently lack it. However, critics, including Kagwe, maintain that the fund is unsustainable and will not meet its ambitious goals.Kagwe Raises Concerns Over SHIF, Urges Continued NHIF FundingKagwe Raises Concerns Over SHIF, Urges Continued NHIF Funding Former Health Cabinet Secretary Mutahi Kagwe has voiced strong opposition to the government’s plan to replace the National Health Insurance Fund (NHIF) with the Social Health Insurance Fund (SHIF), declaring, “It won’t work.” Kagwe argued that there is no need to change the national health insurance system. He expressed concerns that insuring some government employees with private sector insurers could lead to the collapse of SHIF. He believes that public health funds should continue to be channeled through the NHIF. “I have never fully understood the need for the changes that occurred because I have always believed that insurance is based on probability, and health insurance more than anything else,” Kagwe said. “The treasury money meant for health purposes should be channeled through the NHIF, so to speak.” Kagwe specifically criticized the National Police Service’s decision to contract with a consortium of insurers for its healthcare needs instead of using the NHIF. He emphasized that the Sh8.67 billion contributed by police officers is crucial for the national fund to cover more Kenyans. “The reason why I think, for example, the police and other sectors of the economy should be part of the NHIF is because of the availability of healthcare across the country,” Kagwe said. “If you tell a police officer that they are protected by a private sector company and they work in a remote area where hospitals recognized by that company do not exist, where do you expect them to be served?” From July 1, 2024, access to healthcare will shift to the new Social Health Authority (SHA) alongside SHIF, replacing the NHIF scheme. Under this new system, each household will contribute 2.75% of their income, with a minimum monthly contribution of Ksh300. Kagwe’s concerns have stirred debate about the future of national health insurance in Kenya. Supporters of SHIF believe it will provide more comprehensive and equitable health coverage, while critics like Kagwe fear that the transition could disrupt access and financial stability. The government insists that SHIF will address inefficiencies and expand healthcare access. However, the success of this transition hinges on execution and maintaining solid financing.Former Health Cabinet Secretary Mutahi Kagwe has criticized the newly launched SHIF Health Fund, expressing skepticism about its effectiveness. Kagwe stated that the fund’s design is flawed and unlikely to achieve its intended objectives. He believes it will face challenges in sustainability and equity. The SHIF Health Fund aims to provide universal health coverage to all Kenyans, but Kagwe questioned whether it has adequate funding and infrastructure to cater to the entire population. He also raised concerns about the low contributions expected from members, suggesting that the fund may not generate sufficient revenue to cover the costs of healthcare services. Kagwe emphasized the need for a well-thought-out and sustainable healthcare financing system that addresses the challenges faced by the Kenyan population. He called for a comprehensive review of the SHIF Health Fund to ensure its viability before implementation.