Govt suspends new NHIF rates as Cotu calls off strike

The government on Tuesday suspended the new National Hospital Insurance Fund (NHIF) medical scheme contributions as the workers' union followed suit and called off a strike that was to protest the new rates.

Labour Minister John Munyes said the implementation of the rates would be deferred for three months pending a report of the caretaker committee announced by Prime Minister Raila Odinga on Monday.

(Read: NHIF board sent home as Premier overrules Nyong’o)

During the meeting with Cotu Secretary General Francis Atwoli at the ministry's headquarters in Nairobi, the two parties agreed that they should continue with dialogue on the proposed contributions.

According to the new rates, persons earning less than Sh6,000 per month were to be deducted Sh150 and those earning above Sh50,000 to pay Sh1,000.

Employees with a regular income of Sh100,000 and above would have paid Sh2,000.

The union had said employees would boycott work if the revised premiums, which took effect on Tuesday, were not withdrawn unconditionally.

Controversy over the rates emerged over the fund’s decision to award two private clinics the bulk of the tenders to treat civil servants yet they did not have branches in rural areas.

NHIF director Richard Kerich said Clinix Health Care Centres got Sh84 million and Meridian Medical Centres received over Sh93 million in the first disbursement of premiums for treating civil servants.

On Tuesday, officials from Clinix Healthcare Ltd failed to show up for a meeting before a Parliamentary committee that was to shed light on the controversial medical scheme.

They said the House team had not given them adequate notice informing them of the planned meeting.

However, Dr Robert Monda refuted the claims saying they had scheduled Tuesday's meeting last week and the private health provider was well aware.

He said the House team would now be forced to invoke the National Assembly Powers and Privileges Act which states:

"The Assembly or any standing committee thereof may, subject to the provisions of sections 18 and 20, order any person to attend before it and to give evidence or to produce any paper, book, record or document in the possession or under the control of that person.

"The powers conferred by subsection (1) on a standing committee may be exercised by any other committee which is specially authorized by a resolution of the Assembly to exercise those powers in respect of any matter or question specified in the resolution. "

The meeting was expected to talk about the capacity of the two private health providers picked for the scheme.

The Dr Monda-led team committee is currently meeting Civil Servants representatives to seek the way forward on an issue that has pitted Medical Services Minister Prof Anyang' Nyong'o and Civil Service head Francis Kimemia against each other.

Mr Kimemia sacked the NHIF board on Saturday last week, but a day later, the minister reinstated the officials saying he (Mr Kimemia) had no powers to "micro-manage" the Medical Services ministry.