Cotu secretary-general Francis Atwoli during the Labour Day celebrations at Uhuru Park in Nairobi on May 1, 2012. Mr Atwoli publicly criticised NHIF's chief executive officer, Richard Kerich, and threatened to name three businessmen and three politicians he said were behind the increment with an aim of getting kick-backs for political campaigns. Photo/Salaton Njau
The National Health Insurance Fund’s (NHIF) plan to start charging formal sector workers higher fees beginning this month on Tuesday hit another obstacle after the government ordered it shelved to avert a national strike.
Vice President Kalonzo Musyoka directed Labour minister John Munyes to delay the roll-out of the enhanced NHIF contributions to allow consultations and resolution of the dispute with Cotu over the new fees.
Mr Musyoka was responding to Central Organisation of Trade Unions (Cotu) secretary-general Frances Atwoil's public notice of a strike to Mr Munyes at Nairobi’s Uhuru Park during Labour Day celebrations.
Mr Musyoka said the new scheme should be delayed to pave the way for consultations between the government, Cotu and the Federation of Kenya Employers (FKE).
"I don’t think the solution is a strike. It should be negotiations and consultations,” the VP said. “I direct the minister for Labour to look at the possibility of delaying the deductions even for a month to allow room for consultations. I don’t think it will hurt us if we delay for a month”.
The VP also directed that investigations into alleged corruption made by Mr Atwoli be undertaken, promising that Parliament will do everything within its power to find an amicable settlement.
Mr Munyes had pleaded with Cotu to drop the strike threats and involve the ministry in resolving the disagreements over the new rates.
NHIF is proposing to raise monthly contributions from workers by up to 525 per cent to provide universal healthcare.
But opponents of the move say the deductions are too high given that many employers have health schemes for their workers.
Workers are also opposed to subsidising Kenyans who are not in employment.
The new rates were to take effect from Tuesday but Cotu and FKE have opposed them, threatening industrial action against the fund.
NHIF’s directive to FKE to effect deductions comes a month after the High Court rejected Cotu’s attempt to have the new rates suspended indefinitely.
The Court of Appeal declined to grant the union a stay of execution that it had sought as it moved to challenge the High Court decision.
Mr Atwoli publicly criticised the fund’s chief executive officer, Richard Kerich, and threatened to name three businessmen and three politicians he said were behind the increment with an aim of getting kick-backs for political campaigns.
“The new NHIF rates needed prior consultations with the social partners, mainly employers and workers, and to date we have not agreed on the rates and in any case, the NHIF capacity is wanting and the situation is worsened by the absence of properly equipped facilities,” he said.
The fund, which has written to employers, asking them to effect deductions from May 1, intends to raise monthly contributions for those earning a gross salary of Sh100, 000 and above from Sh320 to Sh2,000 to finance an expanded programme that covers both outpatient and in-patient services for its members.
Those earning between Sh50,000 and Sh100,000 will pay Sh1,500 per month while the lowest paid formal sector workers earning a salary of less than Sh5,999 will contribute Sh150 in a structure aimed at having higher paid workers subsidise low-income earners.
FKE executive director Jacqueline Mugo called for negotiations over the stand-off to avoid disruptions to industrial peace.
A dollar a day
“Most Kenyans live below a dollar a day cannot afford Sh500 per month. I appeal to Cotu, FKE and NHIF to revisit the matter to avert industrial strikes. Time has come for dialogue because we have had a lot of strikes in the past two months and this has impeded work,” she said.
She said most employers have medical schemes for workers and therefore there was need for NHIF to listen to employers and Kenyans’ outcry.
FKE said it had received both Cotu’s strike notice and NHIF circular calling for deductions and this has left employers confused on whether or not to deduct the new rates.
Mr Atwoli accused NHIF management of awarding two healthcare providers, Meridian and Clinix, millions of shillings in capitation amounts yet some of its clinics were unavailable.
