Court dismisses case challenging new NHIF rates

National Hospital Insurance Fund headquarters in Nairobi. Photo/FREDRICK ONYANGO

The implementation of a new health insurance regime looms after the Industrial Court dismissed a case seeking to stop an increase in the rates.

In his ruling delivered on Wednesday evening, Justice Nzioka Wa Makau dismissed the case filed by an employee union, which had earlier succeeded to get a temporary injunction against the new National Hospital Insurance Fund (NHIF) rates.

Justice Makau said the petitioners have been adequately represented in the negotiation leading to the proposed rate.

“The petitioners Application dated 20th September, 2012 is not fit for grant. It is dismissed with costs,” ruled Justice Makau.

Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (Kudheiha) moved to court challenging implementation of the new rates, saying, the NHIF board, Medical Services Minister Anyang’ Nyongo’ and Labour Minister John Munyes were intending to enforce the enhanced NHIF rates without consultations.

In the proposed rates, the lowest paid worker — earning Sh6,000 is set to contribute Sh150 per month while the highest paid employee — with a salary of over Sh100,000 will be deducted Sh2,000 monthly.

The self-employed workers and volunteers will contribute Sh500 and Sh300 respectively under the new scheme to the fund.

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