Omtatah Challenges Legality of New Health Financing Scheme in Court

Zilper Ochieng

Busia County Senator Okiya Omtatah has asked the High Court to declare Kenya’s new health financing framework unconstitutional, arguing that universal health care should be fully funded through taxation, as required by the Constitution. Appearing before the court, Omtatah maintained that the government has a constitutional obligation to provide access to health services without imposing additional compulsory charges on citizens who already pay taxes. He argued that the Social Health Insurance Fund (SHIF) and the Social Health Authority (SHA) unlawfully shift this responsibility to the public through mandatory contributions.

According to the Senator, the new framework effectively amounts to double taxation, forcing Kenyans to finance healthcare twice through taxes and direct deductions. Omtatah also raised concerns over inconsistencies in official financial records, questioning the repayment timelines of loans linked to the scheme. He told the court that documents indicate loan repayments would begin six months after approval, in February 2025, contradicting earlier public statements that repayments would start in August 2024. He described the discrepancy as deceptive and said the public had been misled.

The lawmaker further challenged the legislative process behind the reforms, arguing that the amendments forming the basis of the new health financing model were never approved by the Senate, as required by law. As a result, he said the Finance Act lacked the authority to introduce the scheme. He also accused the government of violating the principle of legitimate expectation, noting that Kenyans had previously been assured that healthcare reforms would not result in extra financial burdens on workers.

Omtatah argued that mandatory worker contributions undermine the constitutional right to accessible, affordable and adequate healthcare, and amount to a breach of public policy. In addition, the petitioners claimed that the transition to the new system was riddled with data protection breaches, alleging that personal information was transferred without proper safeguards or consent. In their closing submissions, petitioners led by Omtatah, Nakuru-based surgeon Dr Benjamin Agare, and activist Eliud Matindi urged Justice Bahati Mwamuye to invalidate SHIF and SHA, citing violations of constitutional procedures, labour rights, and data protection laws.

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