A section of Kenyans has expressed concerns about the Lipa Polepole contribution model introduced at the Social Health Authority (SHA).
They have questioned the relationship between SHA and the financial inclusion fund, popularly known as the Hustler Fund.
Under the new staggered payment plan, which took effect in June, self-employed Kenyans are now required to settle the annual subscription to SHA as a lump sum through the Hustler Loan, eliminating monthly contributions.
Those who have been making monthly payments to SHA now find themselves at a crossroads.
Speaking to the press, Lawrence Okumu said his attempt to pay the Ksh750 monthly payment failed due to a system error.
Okumu mentioned that the system is demanding a lump sum payment of Ksh5,250 to settle the outstanding remittances for the remaining months of the year.
He stated that there is a prompt on his phone directing him to the lipa polepole option, where he will be presented with a mobile loan facility.
However, Okumu explained that the new system is expensive as it means he will be paying an additional Ksh3,375 to the scheme.
“Hustler Fund tells me I am supposed to pay Ksh12,375 per year, and when I look at the difference at this time, I pay Ksh9,000 every year…now the difference is Ksh3,375. Now, as a common citizen, I cannot afford to get that money within one day,” Okumu, a rider, stated.
Revert Back to SHA Monthly Payment
Similarly, George Martin, a driver, urged the government to revert to the monthly payment scheme.
Martin said he cannot afford the Ksh3,600 required under the lipa polepole payment scheme.
“If Ksh600 was all I could afford to pay, what about that Ksh3,600? They should just let people pay what they were paying before,” Martin noted.
Also Read: Why Employers Risk Ksh2 Million Fine Over SHA Contribution
Questions Raised Over Ruto’s Decision
President William Ruto unveiled the annual payment to SHA during his Madaraka Day speech.
This integrates it with the Hustler Fund ecosystem, where self-employed Kenyans unable to afford the annual lump sum will be granted a loan, which they can choose to repay either daily, weekly, or monthly.
Ruto said the initiative will allow contributors to the SHA to pay their premiums in instalments, rather than in one lump sum.
Lawrence Opondo, a Kisumu resident, questioned why the government raised the Hustler Fund loan limits solely to enable Kenyans to pay SHA.
Also Read: Ruto Rolls Out Lipa SHA Pole Pole Plan for Informal Sector
“This loan you are giving us is like before; you did not give us a loan that is enough. Now, where are you getting this money to increase our loan just once?” Opondo asked.
“I am happy to sort myself out with this little bit of money I get. Even if it is Ksh10, I can spend another Ksh5 knowing this is for medical treatment,” Josiah Otieno, a tout, highlighted.
According to State House, 23.3 million Kenyans have registered with SHA, with 2,946 being enrolled in the Lipa Pole Pole programme.e Pole programme.
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