The National Hospital Insurance Fund (NHIF) is optimistic that the new contributors’ rates will be gazetted as planned. The Fund said it could not offer improved services due to the current impasse, noting that the rates were last reviewed in 1989.

NHIF proposes that high-income earners part with a higher monthly rate of Sh2,000, up from a flat rate of Sh320.

However, Trade Union Congress of Kenya (TUC-K) has called for the suspension of the planned new rates to pave way for consultations.

But speaking on the sidelines of the Fund meeting at a Naivasha hotel, NHIF Board Chairman Mohamud Ali said there was light at the end of the tunnel.

He noted that the fund had held talks with the Central Organisation of Trade Unions (COTU) and the Federation of Kenya Employers (FKE), with both parties agreeing to withdraw a court case challenging the new rates.

“We have already had talks with COTU and FKE, who have agreed to withdraw their case from court so that the act can be implemented,” he said.

The chairman said there was need for the review of the rates, adding that was the only way the fund would be competitive with others in the market.

“The current rates were last reviewed in 1989, when the highest earning Kenyan got a salary of less than Sh20,000 and this is what we want to change,” he said.

Basic salary

Ali noted that the Ministry of Heath had embarked on rehabilitating two health centres in every county. “There is a directive from the Government that two health centres in every county be equipped with modern facilities to help Kenyans from rural areas access them,” he said.

He said the board would urgently form a committee to address the issues and concerns raised by TUC-K.

On Friday last week, TUC-K called for the suspension of the new rates, arguing there was urgent need for more talks.

TUC-K Secretary General Wilson Sossion said some of the issues in the new act needed to be addressed.

Sossion said there was no need to hurry the gazettement, adding that all stakeholders should be brought on board so as to have a common ground.

Addressing the Press in Naivasha after a two-day retreat that brought together TUC-K and NHIF officials, Sossion said they had identified five key issues that required urgent consideration.

“We want the contribution to be a variable rate pegged at 1.5 per cent of the basic salary and the Government to pay twice the member’s contribution,” he said.

He said Kenya was the only country that does not contribute to its members’ rates, saying it happens even in the neighbouring Tanzania.