The High Court has on Monday declared the mandatory Social Health Insurance Fund (SHIF) deductions on salaried Kenyans as unconstitutional.
Issuing the statement was High Court Judge Chacha Mwita who said that contributions was not only problematic but was double taxation those contributing to the fund.
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He continued by saying that Kenyans are obligated to pay income tax on gross income as stipulated under the Income Tax Act where all those employed or earning from investments are taxed accordingly.
According to Judge Chacha Mwita, Kenyans are already being taxed on their gross income and subjecting them to another tax after the gross income it is double taxation.
The Court was making the statement in regard to a case filled by three doctors on the matter. The court however made it clear that it was premature make any decision as a similar case was before the court.
