MPs lower penalties on NHIF defaulters

By Vitalis Kimutai

Nairobi, Kenya: MPs voted to lower the penalties charged by National Hospital Insurance Fund (NHIF) on contributors who default on monthly remittance for the medical scheme.

The MPs last week supported a motion sponsored by Kirinyaga Central MP Joseph Gitari, which sought the penalties surcharged to defaulters lowered from the current 500 per cent to 25 per cent on the grounds it was barely affordable to majority of Kenyans.

Gitari said the punitive penalties should not apply to those in the informal sector, with most of them being vegetable and fruits vendors, second hand clothes dealers and boda boda operators.

Seme MP James Nyikal, who is a former Director of Medical Services, said when the individual contributors were taken on board under the NHIF scheme, many enrolled but only paid the initial fee and only paid the outstanding fee when they fell sick.

Chronic defaulters

“As a result, NHIF paid out more than eight times more than the contributors were. MPs should not look at this in terms of magnanimity because people need care and this is the basis of insurance. If members are only allowed to pay when they are sick, then the insurance scheme will fail,” said Nyikal, who is also a former NHIF board chairman.

Soin/Sigowet MP Justice Kemei said that the penalty should be retained because individual contributors were few and majority of the defaulters were businessmen who should not be allowed to get away with withholding contributions they deduct from their employees.

“NHIF is the only insurance fund available to low income earners in the country and which established businessmen and organisations should not be allowed to kill,” Kemei said.

Runyenjes MP Cecily Mbarire said the biggest burden that MPs carry is healthcare, with many of them participating in fundraising to offset hospital bills for their constituents.