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NEWS & CURRENT AFFAIRS

The Nairobian

Workers to pay more as NHIF gazettes new rates

Business

By Jackson Okoth and Nicholas Waitathu | Feb 14, 2015

The National Hospital Insurance Fund (NHIF) has published new rates which take effect April 1, this year. This is against protests from the Federation of Kenya Employers (FKE), which is pushing for more consultations.

In a special gazette notice dated February 6, 2015, the proposed premiums will see those in employment and earning a gross income of up to Sh5,999 contribute Sh150 per month, the lowest contribution according to the proposed rates published by the fund. The self-employed will contribute Sh500 monthly.

Legal notice

The highest monthly contribution is Sh1,700 for those earning Sh100,000 and above. The legal notice was signed by NHIF Chief Executive Simeon ole Kirgotty and the Fund's Chairman Mohamud Mohamed. "These changes are in accordance with the NHIF Act and the Fund's board, in consultation with the health cabinet secretary," said the notice.

Those earning between Sh8,000 and Sh11,999 will contribute Sh400 while those earning between 12,000 and Sh14,999 will contribute a monthly premium of Sh500.

Keep Reading business

Those earning between Sh15,000 and 19,999 will contribute Sh600 while those earning between Sh20,000 and Sh24,999 will have Sh750 deducted from their monthly pay slips. While the Central Organisation of Trade Unions had filed a lawsuit challenging the proposed new NHIF rates, it has since withdrawn the case, giving NHIF the green light to effect the new rates.

Digging deeper

Expected to be hit most will be low income earners who will now be required to dig deeper into their pockets to make contributions to the National Social Security Fund. The State-pension fund has proposed to increase monthly contributions from the current Sh200 to Sh1,080 per month.

Already, FKE has said the implementation of the new rates ought to be postponed until pertinent issues surrounding the fund are solved. "There is need to first complete the internal reforms in NHIF," said FKE Executive Director Jackline Mugo.

Ms Mugo insists that NHIF need to first restructure itself to enable it gain the necessary ability to manage finances prudently. She wants stakeholders to consult widely and iron out all outstanding issues first.

FKE also wants the new rates implemented in phases to ease burden to contributors. "We need to consult so that we know how firms which run private medical schemes can participate in the new arrangement," said Ms Mugo.