Economy

State eyes NHIF household contribution for wider reach

nhif

The National Hospital Insurance Fund (NHIF) in this picture taken on Tuesday, October 26, 2021. PHOTO | DENNIS ONSONGO | NMG

The government will restructure the National Hospital Insurance Fund (NHIF) from an individual contributory scheme to a household contribution model to grow the population under cover.

President William Ruto in his Mashujaa Day speech Thursday said the government will make the fund a social insurance scheme rather than an occupational scheme for salaried people.

Through NHIF, Dr Ruto says he will make Universal Health Coverage (UHC) a reality and liberate Kenyans from the threat of poverty that lurks every time a family member falls ill.

“Health lies at the front and centre of socio-economic development. The failure of a healthcare system undermines prosperity. Kenyan families spend a total of Sh150 billion in out-of-pocket expenditures on health services a year mobilised from various sources, including harambees, WhatsApp M-Pesa, loans, sale of land and other assets, to pay hospital bills for loved ones," Dr Ruto said.

The Head of State has, however, acknowledged the progress in enrolling more members, hitting 12 million Kenyans joining the fund in the past 10 years.

On Wednesday, the President pointed out the fund as a key driver to the realisation of UHC, saying its restructuring will enable it to become a fit for purpose social insurance scheme that caters even for chronic diseases.

At the same time, the President said, as part of the response to climatic change and its impact, the ultimate solution includes greening the country to more than 30 percent of tree cover by 2032.

“Data on our forest cover paints a grim picture, and calls for quick action. Of the 59.2 million kilometre square land area in Kenya, only 5.2 million square kilometres is under forest cover. Of this, public forests cover 2.6 million hectares, which is 50 percent of the total national forest cover.

"The remaining 54 million hectares are bare earth, exposed to erosion and biodiversity loss,” said Dr Ruto.