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{
    "id": 1521202,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1521202/?format=api",
    "text_counter": 83,
    "type": "speech",
    "speaker_name": "Endebess, UDA",
    "speaker_title": "Hon. (Dr) Robert Pukose",
    "speaker": null,
    "content": "The second issue is the sustainability of the Social Health Authority (SHA), given that 18 million people are registered, but only four million have made payments and measures that SHA plans to take to cover the financing gap. There is a disparity between the registered persons, which is 18 million individuals, against the four million who are actively contributing financially. The following challenges have caused the financing gap: 1. Low Contribution Rate: The core challenge is the low contribution rate, which is approximately 22 per cent. This indicates that a large portion of the registered population is not actively participating in the scheme. 2. Informal Sector Challenges: The informal sector has a significant portion of the Kenyan workforce, estimated to be 80 per cent of the population. This presents unique challenges due to irregular income, limited financial literacy, and difficulty accessing formal financial systems. Reaching and retaining this group is crucial for sustainability. 3. Indigent Population: Approximately 30 per cent of our population is unable to afford contributions, requiring government subsidies. The mechanism for identifying and supporting indigents needs to be fast-tracked 4. Compliance and Enforcement: Ensuring compliance from both formal and informal sectors is essential. Effective enforcement mechanisms are needed to address non-payment and ensure consistent contributions. To mitigate these challenges, SHA has put in place a multipronged approach, including: 1. Enhanced Informal Sector Engagement through sensitisation campaigns, integration with county government partnerships, informal sector organised groups and other existing structures like SACCOs and chamas. 2. Engagements with the State Department for Social Protection and county governments for identification, budgeting, and payment of premiums to SHA for all indigent populations."
}