Hustler fund customers will be deducted Sh17 per day for the National Health Insurance Fund.
This move will lead to the creation of a medical insurance product funded by the deductions from hustlers' loans.
The government last year announced its plans to restructure the NHIF from an individual contributory scheme to a household contribution model to grow the population under the cover.
This coming as one of the new developments aimed at increasing the contribution to the state health financing scheme that had received a battering during the Covid-19 pandemic period.
Principal Secretary in the State Department of SMEs Susan Mang'eni told The Star that the new plan will ensure small businesses don’t utilise their capital for medical expenses.
" Our SMEs cannot differentiate from personal and business finances. They use the capital for medication Sickness is the major disruptor of SMEs at infancy," Ps state department of SMEs Susan Mang'eni.
The scheme will be looking to tap onto the hustler funds base that has experienced growth since its launch in November last year.
Currently an average of 7 million Kenyans borrows and pay their loans on a daily basis.
The number of hustler loan applicants has also risen to 19.7 million with 62 per cent of the Sh26 billion disbanded hustler fund being paid back.
President William Ruto’s administration has been keen to increase the funding in the state backed health scheme.
Currently, the lowest contributors usually drawn from the informal sector remit Sh500 per month to the national health scheme while those in the formal sector contribute between Sh150 and Sh1,700 every month, depending on the salary scale.
Last week Ruto hinted at reducing the amount currently paid by Kenyans in an effort to increase members into the scheme on the way to universal healthcare for all.
In the proposal the president had hinted that Kenyans will pay Sh300 per month to the NHIF down from the current Sh500 for the lowest band.
“Through this even the hawkers will now be able to access high premium insurances and hospitals. We have partnered with financial partners and we are coming up with a credit score based on your personal character," added Mang'eni.
NHIF data for the financial year ended June 2022 shows that membership grew to 15.4 million from 13.94 million attributed to the onset of the Covid-19 pandemic which made many people vulnerable to other diseases.