Naema Celestine 
Elizabeth Kisiangani
The recently enacted social health insurance fund Act in Kenya, introduces a 2.75% deduction from individuals incomes.
This deduction will apply to both formal and informal employment, with a specific mention of a means testing approach for those in informal employment.
Kenya’s savings and credit co-operative societies have to this end expressed concerns about the impact of additional tax deductions on their members salaries, they fear that this could negatively influence savings habits and reduce the uptake of loans among their members.
Under the social Health Insurance fund, employees across different income brackets will experience varying increases in their contributions, for instance, those earning 50,000 shillings will now contribute 1,375 shillings up from 1,200 shillings, employees rised 2,750 and 13,750 shillings respectively.
However,employees with a gross monthly salary of 20,000 shillings will experience a reduced tax of 550 shillings from 750 shillings under NHIF.
