The new Bill that requires employers to match workers’ monthly contributions to the National Hospital Insurance Fund (NHIF) has been opposed by insurers arguing that it would affect their wage bills.
According to the Association of Kenya Insurers (AKI), the new bill will increase unemployment rates as employers will prefer casual workers so as to dodge the top up contributions.
“Other employers who have organised for a private medical cover for their employees should be exempted from the top ups,” Tom Gichuhi, the AKI Chief Executive, told Parliament.
The plan was to have the workers continue paying same amounts and employers matching in a structure modelled on the National Social Security Fund (NSSF).
The Bill establishes the National Health Scheme whose membership will be compulsory for every adult Kenyan, contributing Sh500 every month or Sh6,000 annually.
Any person who attains the age of 18 years and is not a beneficiary will be forced to register as a member of the fund.
While the Bill had mandated employers to contribute for their staff, Leader of Majority Amos Kimunya successfully pushed an amendment that binds employers to match contributions with what their employees are liable to contribute to the fund.
The insurance industry had proposed that employers who are able to sponsor their employees for private medical covers should be exempted or allowed to opt out of making the matching contribution.
Official data shows that NHIF had 8.898 million members as at the end of June last year, with 4.452 million drawn from the formal sector and 4.546 million from the informal segment.
