NHIF says the higher contributions will help it expand access to quality and comprehensive healthcare. PHOTO | FILE
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NHIF chief executive Simon ole Kirgotty said the withdrawal of the case paves the way for the fund to review the monthly rates that have remained unchanged since 1989.
The proposed deductions will range between Sh150 and Sh1,700 per month depending on a worker’s income.
The fund in 2011 sought to increase the premiums to between Sh150 and Sh2,000, but a court blocked the review.
The National Hospital Insurance Fund (NHIF) is now free to increase workers’ monthly contributions to Sh1, 700 after the Central Organisation of Trade Unions (Cotu) withdrew a lawsuit challenging the review.
NHIF chief executive Simon ole Kirgotty said the withdrawal of the case paves the way for the fund to review the monthly rates that have remained unchanged since 1989.
“We received the notice of the withdrawal of the suit on January 5,” Mr Kirgotty said.
“We’ll start consultations with the Health ministry from next week and agree on when the new rates will take effect.”
The proposed deductions will range between Sh150 and Sh1,700 per month depending on a worker’s income.
Salaried workers’ contributions to the NHIF currently range between Sh30 to Sh320 based on the gross monthly salary, and Sh160 for pensioners and the self-employed.
The fund in 2011 sought to increase the premiums to between Sh150 and Sh2,000, but a court blocked the review.
The withdrawal of the suit indicates that Cotu has managed to win a small concession. The increase is expected to be particularly painful for many workers who will take home less pay at the end of the month at a time when the National Social Security Fund (NSSF) is also seeking to raise monthly contribution from Sh200 to Sh1, 080.
But employers are not comfortable with the NHIF/Cotu deal. The Federation of Kenya Employers (FKE) says the new rates are high and wants assurances that NHIF has the capacity to offer the promised inpatient and outpatient cover with higher contributions.
FKE also wants a guarantee that the fund has broken corrupt networks following major scandals that previously hit the insurer, as well as the hospitals that contributors will access.
“We still need to be convinced that NHIF has the structures to handle the big money and can deliver on the promised products that will come with the higher rates,” Jacqueline Mugo, FKE executive director, told the Business Daily on Wednesday.
Employers also fear that the cut could prompt workers to push for higher wages in a business environment where companies are racing to put a lid on costs.
NHIF says the higher contributions will help it expand access to quality and comprehensive healthcare.
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