State, workers fail to strike deal on new NHIF rates in long running battle

NAIROBI: Trouble is brewing after the Government yesterday rejected a tentative agreement with trade unions that the new, increased National Hospital Insurance Fund (NHIF) rates be suspended.

The Union of Kenya Civil Servants (UKCS) Secretary General Tom Odege said talks with the Ministry of Health, Public Service Commission and NHIF have failed to yield fruit.

The Trade Unions Congress (TUC-Ke) of Kenya, which includes the UKCS, Kenya National Union of Teachers (Knut) and Universities Academic Staff Union (Uasu), was yesterday threatening to issue a notice for a general strike.

"We have not reached an amicable solution. There is no agreement so far. The last two days have not yielded much," said Knut Secretary General Wilson Sossion, who also chairs the TUC-Ke. He gave the Government until midnight yesterday to suspend the new rates.

"Workers have been denied their rights through a web of heavy conspiracies. The Gazette notice (announcing the new rates) was in bad faith," he said.

All unions in TUC-Ke have been directed to convene today for further directions, but acting Labour Cabinet Secretary Raychelle Omamo said both parties had agreed on further talks.

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"We have had good and genuine discussions between both parties and agreed that there is need for further dialogue. Unfortunately there has been no consensus under which the dialogue should take place," she said.

"It is the position of the Government that suspending the Gazette notice would be detrimental to ordinary Kenyans benefiting from the NHIF. The matter had been in court and we ask the TUC-Ke to await the court verdict that will address all the issues thereto," said Ms Omamo.

The earlier agreement to suspend the rates was arrived at after two days of meetings between the parties.

The meetings, chaired by Omamo, had resolved that the union calls off the impending strike and fresh talks commence to come up with a revised deduction format for all workers.

The TUC-Ke was also asked to withdraw the court case they filed asking for the revocation of the Gazette notice that effected the controversial rates.

NHIF published a legal notice in the Kenya Gazette containing the new rates on February 6, 2015.

The new rates have been the subject of concerted resistance by workers' unions, with affiliated members of TUC-Ke issuing strike notices.

Teachers have asked to be exempted from the NHIF deductions, saying they have procured a comprehensive Sh5.6 billion medical cover.

HIGH SALARIES

Knut said the deductions must be based on basic pay and not on gross pay. Sossion, who is also the TUC-Ke boss, said the new rates favour people with high salaries.

"How can someone earning Sh100,000 pay Sh1,700, which is the same as a worker earning Sh1 million? This is not fair and the deductions must be pegged as a percentage of pay for equity," Mr Sossion said.

He said the State must also co-pay at a rate of twice the amount of members contributions.

"We also want those Kenyans with superior medical schemes to be exempted from NHIF deductions," said Sossion. But NHIF Chief Executive Officer Simon Kirgotty said the fund was undergoing surgical reforms and services were being enhanced in clinics and hospitals to benefit all Kenyans.