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Kenya: Withdrawal of Kenyan Finance Bill and Postponement of Social Health Act Implementation

The following is an update on the proposed tax changes and the implementation of the new SHIF:

1. Withdrawal of the Kenyan Finance Bill

President William Ruto has announced the complete withdrawal of the Finance Bill, 2024. This decision comes after widespread protests and public outcry against the bill’s tax measures.

As a result, Kenyans still operate under the existing Finance Act, 2023. The Finance Bill, 2024 will be referred back to the National Assembly, accompanied by a memorandum explaining the reasons for declining to assent to it. The government had initially sought to raise nearly Sh200 billion in additional revenue through this bill, but its withdrawal ensures continuity without disruption.

https://www.the-star.co.ke/news/2024-06-26-explainer-what-next-after-ruto-withdrew-finance-bill-2024/

What this means for us: All the proposed tax changes are withdrawn.

2. Suspension of the Launch of the New Social Health Insurance Fund (SHIF)

Health Cabinet Secretary Susan Nakhumicha has announced the indefinite suspension of the new health cover. This decision is primarily due to the withdrawal of the Finance Bill, which had allocated approximately Sh6 billion to support the Social Health Authority. Until further notice, the National Health Insurance Fund (NHIF) will continue to operate as usual.

https://www.the-star.co.ke/health/2024-06-29-nhif-to-continue-as-state-indefinitely-suspends-launch-of-new-health-cover/

What this means for us: The implementation of the SHIF has been postponed.