Pain in the pocket as new NHIF rates take effect
By Jackson Okoth
| Apr 1st 2015 | 1 min read
Kenya: Following the publication of a legal/gazette notice on new National Hospital Insurance Fund (NHIF) contributions, the Government of Kenya has announced that formal sector workers will start paying higher NHIF contributions with effect from April 1, 2015.
This has come after a long court battle between the Central Organisation of Trade Unions (COTU) and the Fund's board, which started in 2010.
In a special gazette notice dated February 16, 2015, the proposed premiums will see those in employment and earning a gross income of up to Sh5,999 contributing Sh150 per month, the lowest contribution according to the proposed rates published by the NHIF. This is compared to the Sh500 per month for those that are self-employed.
The highest monthly contribution is Sh1,700 for all those earning a salary of Sh100,000 and above. The legal notice was signed by NHIF Chief Executive Officer Simeon ole Kirgotty and Chairman Mohamud Mohamed Ali. The changes in the regulations have occurred in accordance with the NHIF Act and the Fund's board in consultation with the Cabinet Secretary for Health.
The new rates are cited under the NHIF (standard and special contributions) regulations, 2015. Those earning a salary of 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.
The Fund's core mandate is to provide medical insurance cover to all its members and their declared dependants (spouse and children). It is compulsory for all Kenyan citizens in formal employment to contribute towards this fund.
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