The High Court of Kenya has ruled that the Social Health Insurance Act (SHIA), enacted in October 2023, is unconstitutional and has temporarily halted its implementation.
The judgment, delivered by Justice E.C. Mwita on June 13, 2025, comes amid ongoing legal challenges concerning the law’s provisions and the manner of its rollout.
The petitioners, led by Dr. Clarence Eboso Mweresa and others, argued that the law’s mandatory registration and contribution requirements violate Kenyans’ constitutional rights to privacy, property, and equality.
They contended that the law improperly compels citizens to register with the Social Health Insurance Fund (SHIF), and that contributions—particularly the 2.75% deduction from gross salaries—amount to unlawful double taxation and violate the right to property.
The court noted that some issues, including the constitutionality of sections of the law and the transfer of personal data from the National Hospital Insurance Fund (NHIF) to SHIF, are already pending before the Court of Appeal or in related petitions.
As a result, the court declined to determine the legality of the law’s implementation, citing the need for these matters to be settled first.
Justice Mwita emphasized that the law’s provisions lacked public participation, which is a constitutional requirement, and that the automatic transfer of personal data without explicit consent infringed on privacy rights.
The ruling also highlighted concerns that the law’s mandatory contributions and registration could lead to discrimination and violate property rights, particularly regarding the deduction of post-tax income.
The court’s decision effectively suspends the rollout of SHIF until the pending appeals and related cases are resolved.
