Kenya’s Plan to Deduct SHA from M-Pesa – What You Need to Know

The government has launched a bold new plan to deduct SHA from M-Pesa in a flexible, user-friendly way.

Aiming to improve health coverage for millions of Kenyans in the informal sector, the plan allows daily mobile money deductions as low as KSh50.

This voluntary approach targets those struggling to meet the KSh300 monthly minimum for the new Social Health Authority (SHA) contributions.

By partnering with mobile service providers, the government hopes to drive higher participation while making health insurance more accessible, especially for low-income earners and casual workers across the country.

Govt to Roll Out Daily M-Pesa Deductions for SHA Contributions

The government will soon allow Kenyans to pay their Social Health Authority (SHA) contributions directly through daily M-Pesa deductions.

Moses Kuria, a Senior Advisor in the President’s Council of Economic Advisors, made the announcement on April 2 in Nandi County.

He spoke during the launch of the Community Health Promoters and the Boda Boda Incentive Programme under Taifa Care.

Under the Social Health Insurance Act (2023), salaried workers are already contributing 2.75% of their gross income.

Others, especially in the informal sector, are expected to pay a minimum of KSh300 per month. But many struggle to meet that amount.

To fix this, the government will roll out a new “Lipa Pole Pole” model, enabling flexible and automated daily deductions from mobile wallets like M-Pesa. The goal is to ease the payment burden and boost coverage.

How the M-Pesa Deduction System Will Work

Kuria explained that this new SHA payment method will be voluntary. Kenyans will subscribe to the service and choose how much to contribute daily, starting from as little as KSh50.

The deductions will be automatic, requiring no follow-ups or reminders.

“It will be like subscribing to call tunes,” said Kuria. “Just like how you get charged KSh1 a day for your ringtone, SHA will work the same way—small, manageable amounts deducted regularly.”

This model is designed to make health insurance more accessible to people who earn small amounts daily or weekly.

By integrating the payment system with M-Pesa and other mobile platforms, the government believes more Kenyans will afford and maintain consistent health coverage.

Kuria assured Kenyans that the plan is not a forced deduction, contrary to online speculation. “This is 100% voluntary. No one is going to force you to part with your money,” he stated.

Boosting SHA Coverage and Incentivizing Promoters

During the same event, Kuria also launched an incentive to encourage more registrations. Community Health Promoters will now receive KSh20 for every new member they help sign up to SHA.

The latest data from the Ministry of Health shows that 20.8 million Kenyans have registered under SHA. An additional 5.7 million dependents are also enrolled.

Counties like Mombasa, Bomet, Nyeri, Elgeyo Marakwet, and Kirinyaga are leading in registration numbers. However, only 5 million of these registered individuals are actively contributing.

This has raised concerns about sustainability and forced the government to consider new strategies—like mobile deductions—to improve compliance.

SHA replaced the National Hospital Insurance Fund (NHIF) in October 2024. Its success now depends on consistent contributions from Kenyans in all sectors of the economy.

The move to deduct SHA from M-Pesa offers a practical, tech-driven solution to one of the biggest challenges in universal health coverage: affordability and consistency.