Uproar over NHIF plan to raise contributions
Kenyans earning more than Sh100,000 should brace for more payments for their National Hospital Insurance Fund (NHIF) if the Ministry of Health proposed regulations are passed.
The proposed regulations, if passed, will increase monthly premiums for earners of more than Sh100,000 beyond the current flat rate of Sh1,700.
Under the draft regulations published by Health Cabinet Secretary Mutahi Kagwe in consultation with the NHIF board, Kenyans earning more than Sh99,999 will be contributing 1.7 per cent of their gross income to the NHIF.
Those earning Sh200,000 per month will contribute Sh3,400 — being double their current contributions, while those earning Sh500,000 will see their premiums rise five times to Sh8,500.
The proposal, alongside four others, were published yesterday, with NHIF Chief Executive Peter Kamunyo indicating that they will be subjected to public consultation between February 23 and March 22.
Increasing premiums for top earners looks set to raise income for NHIF, which is expected to take the lead in implementing the Universal Health Coverage (UHC) programme.
The Federation of Kenya Employers have opposed the proposal stating that the move is radical and against standard practices.
“As the custodians of employers in the country, we were never consulted. We have an issue with the draft,” FKE chief director Jacqueline Mugo said.
Employers had rejected proposals in a Bill that required them to match workers’ monthly contributions to the NHIF.
The plan was to have the workers continue paying the same amounts and employers matching in a structure modelled on the National Social Security Fund (NSSF).
Employers were to pay at least Sh25 billion to the NHIF, an added burden to firms that are yet to recover from the coronavirus-induced slump, which triggered job cuts, hiring freezes and business closures.
In a memorandum to the National Assembly committee on Health, Mugo said the proposals contained in the NHIF (Amendment) Bill, 2021 overlook the fact that some employers provide medical insurance for their staff.
