New NHIF rates to take effect in April

What you need to know:

  • Workers earning Sh5,999 and below will pay Sh150 while those paid Sh100,000 and above remit the highest amount at Sh1,700.
  • The self-employed, who have been paying Sh160 per month, will start paying Sh500 when the new rates take effect.

Formal sector workers will start paying higher NHIF contributions in April following the publication of a gazette notice to the same effect.

Most workers have been paying Sh320 per month to the National Hospital Insurance Fund since 1988 when the rates were last reviewed.

Starting April, however, the contributions will rise in a graduated structure that will see top earners’ deductions rise by up to 431 per cent.

“This legal notice shall take effect from the 1st April, 2015,” reads part of the notice dated February 6 and which is signed by NHIF’s CEO Simeon Ole Kirgotty and chairman Mohamud Mohamed Ali.

Workers earning Sh5,999 and below will pay Sh150 while those paid Sh100,000 and above remit the highest amount at Sh1,700.

The self-employed, who have been paying Sh160 per month, will start paying Sh500 when the new rates take effect.

NHIF, which has mainly been paying hospital bed charges for members, says it will use the larger pool of funds to introduce comprehensive inpatient and outpatient medical covers.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.