The Central Organisation of Trade Unions has strongly opposed the implementation of the National Hospital Insurance Fund(NHIF) new higher membership contribution rates amendment Bill, 2021.
According to COTU, the Bill seeks to change NHIF, from a fund to a scheme and thus changing its mandate and objective.
“Cotu and its 45 affiliates have rejected the NHIF (Amendment) Bill, 2021 in totality,” said the union.
The NHIF Bill, 2021 provides that employers will pay contributions for their staffers and not deduct the same from the employees’ pay.
The union said that this amendment bill seeks to change NHIF and will disband it and bring up an amorphous body with a new mandate and new objectives.
“This is against the wish of Kenyan workers who are the contributing members of NHIF,” said the union.
Additionally, the union stated that the Bill seeks to coerce Kenyans to contribute towards NHIF without assuring them reliable services and transparency in the fund.
“NHIF should not be obsessed with collecting more money but use the fund collected effectively. It is also wrong to coerce Kenyans to contribute to any scheme,” said the union.
In 2012, representing workers in the NHIF board, union Secretary General Francis Atwoli, cited that prior to implementation of the new rates NHIF did not have proper public participation and stakeholder engagements that would have otherwise called for more accountability of the fund.
The NHIF fund has since been struggling to meet its obligations to workers.
Workers have lost millions under the fund due to lack of accountability thus massive corruption that has become synonymous with NHIF where the immediate former CEO is still in court to answer to such charges.
The new bill seeks to provide for mandatory contributions by that group at rates set by the NHIF board.
Recently, the proposal sponsored by Majority leader Amos Kimunya exempts people under 21 years who have no income and are living with a contributor.
The Bill exempts people younger than 25 who are in school and have no income except for scholarship or bursary, which would be exempt.
The proposed law would not apply to mentally or physically handicapped persons who wholly depend on the contributor. A spouse is considered covered by a contributor.
The NHIF Bill, 2021 provides that employers will pay contributions for their staffers and not deduct the same from the employees’ pay.
“A person liable to pay a matching contribution shall pay such contributions in their capacity as an employer and shall not deduct such contribution from the salary or other remuneration of the employee,” the Bill reads.
The Bill provides that employers will pay contributions for their staffers and not deduct the same from the employees’ pay.
Employers failing to remit contributions will be penalised 25 per cent of the contribution.
Currently, NHIF contributions are voluntary while employees have contribution deducted from their gross pay every month.
The proposed law is among steps being taken by President Uhuru Kenyatta’s administration to bolster the Big Four agenda of Universal Health Coverage.
