As part of efforts to make Social Health Authority (SHA) coverage more accessible, LIPA SHA POLEPOLE has been introduced as a premium financing solution. It allows eligible members to spread the cost of their annual health insurance premium over 12 months using a loan from the Hustler Fund.

What Is LIPA SHA POLEPOLE?

LIPA SHA POLE POLE enables informally employed SHA members to pay their annual premium in monthly installments. It uses a loan issued via the Hustler Fund platform, which is repaid in 12 monthly cycles. Each month’s loan must be repaid within 30 days to keep the plan active.

Key Benefits

• Immediate access to SHA services without needing to raise the full premium amount up front

• Monthly repayment model can ease financial strain for low-income families

• Low annual interest rate of 8% for on-time payments

• Fully digital process, accessible via mobile (*147# or *254#)

Eligibility Criteria

To use LIPA SHA POLE POLE, a member must:

• Be registered with SHA

• Be informally employed

• Have completed means testing and received a premium amount

• Have paid at least 4 months of SHA premiums since 1 October 2024

• Be registered with Hustler Fund (Personal Loan)

• Have no outstanding Hustler Fund loan

This may limit access for newer enrollees or those with incomplete payments, and could unintentionally exclude some low-income members.

How It Works

1. Loan disbursement: Once approved, your monthly premium is paid directly to SHA.

2. Repayment: You repay that loan in 30 days. You can choose a daily, weekly, or monthly schedule.

3. Automation: Repayments are deducted via M-PESA automatically if a standing order is set up.

Repayments can also be made manually using *147# or *254#.

Interest and Penalties

• 8% per annum interest for repayments made within 30 days

• 9.5% per annum for overdue payments

• Missed repayments will deactivate the SHA account and affect eligibility for future Hustler Fund loans

While the interest rate is relatively low, users must be financially disciplined, as penalties apply immediately after day 30.

Loan Limits vs Premium Amounts

The amount paid to SHA each month depends on your Hustler Fund loan limit — not your SHA premium. This creates three possible scenarios:

1. Loan limit is equal to or higher than premium – Full premium is paid

2. Loan limit is KES 100 – Full premium still covered

3. Loan limit is above KES 100 but lower than premium – Only partial payment made; you must top up the difference manually

This variability can cause confusion and underpayment if not clearly understood, and there’s risk of partial coverage if members assume the full premium was paid.

Technology Dependence

You must use the same mobile number registered to your Hustler Fund account to access this service. This excludes members who have lost their SIM or use different lines for Hustler Fund and SHA.

Additionally, loan processing and repayment notifications rely heavily on M-PESA availability and network stability, which could be limiting in areas with poor connectivity.

Opting Out

Members can exit the program at any time, provided their outstanding loan is fully repaid. After opting out, they will be required to pay their SHA premium in full going forward.

Cautions and Considerations

• This is not a grant or subsidy. It is a loan with repayment obligations.

• Users must have sufficient financial literacy to manage loan cycles and avoid penalties.

• Mismatched expectations (e.g., assuming full premium was paid when only part was covered) could lead to gaps in coverage.

Conclusion

LIPA SHA POLE POLE presents a practical financing option for informally employed SHA members who may struggle with annual lump-sum premium payments. Its structure allows access to health services while spreading financial obligations over time. However, it is important to recognize that this is a loan product, not a subsidy , and with it come repayment responsibilities, potential penalties, and limits based on your Hustler Fund eligibility.

The possibility of partial coverage due to low loan limits, strict repayment timelines, and dependency on a single mobile number are important limitations to note. Users are encouraged to fully understand the terms before enrolling to avoid unintended service disruption or financial strain.

At Mother and Child Hospital, we recommend that all patients and families stand guided by this information when deciding whether to opt into LIPA SHA POLE POLE. Our healthcare teams are available to assist with further clarification where needed.