Nairobi, Oct 1 : Kenya's Ministry of Health on Tuesday oversaw the launch of a new health insurance scheme called the Social Health Insurance Fund, with senior officials saying that it will promote equity, fairness and better service delivery.

Debra Mulongo Barasa, cabinet secretary of the Ministry of Health, presided over the launch in Kakamega County in western Kenya. She said that the new scheme will help reduce the financial burden on citizens seeking critical services such as dialysis, chemotherapy, dental care and surgery.

According to Barasa, more than two million Kenyans have already enrolled in the new scheme, which requires a minimum monthly contribution of 300 shillings (about $2.32), Xinhua news agency reported.

"We have already begun activation of the Social Health Insurance Fund in both public and private hospitals, ensuring that registered citizens receive quality services, including consultations, diagnosis and treatment, at affordable costs," Barasa said.

Kenya initiated the transition to the new health insurance scheme in July this year, following concerns that the previous state-managed National Health Insurance Fund had failed to distribute benefits equitably.

Under the new scheme, all salaried employees will contribute 2.75 per cent of their monthly income, while the government will subsidise healthcare costs for low-income earners and the unemployed.

Barasa said that the new health insurance scheme will pool resources to help achieve universal health coverage and reduce out-of-pocket expenses for terminally ill patients.

Primary healthcare at grassroots-level facilities will be fully covered by the government, while advanced services like chemotherapy, dialysis, optical and dental care will be heavily subsidised through contributions from high-income earners.

Harry Kimtai, principal secretary of the State Department for Medical Services, said that the Social Health Authority, a state-run agency, will manage the new scheme, which was developed following studies and consultations with key stakeholders.

Kimtai said that monthly contributions will be based on individuals' income levels, with high earners paying up to 27,000 shillings.

/IANS